Time to J&J targets Deals grab explorethe Devine right headlines Silk Road to win in 2017 page 10 page 18 page 20

Contents celebrates 15 December 2017 Issue Number 494 COMPANY NEWS UK Viagraswitch Nestlé makes Atrium move 3 en in the UK will soon have OTCac- UK pharmacies “in the spring of 2018”. Alliance snaps up 4 Mcess to Pfizer’s blockbuster erectile- “Inthe interim,”Pfizer added, “the company Vamousse range dysfunction treatment Viagra after an appli- will be implementing an extensive trainingand HRAPharmaeagerly 5 cation to switch the -based product education programme with pharmacies.” seeking acquisitions wasgiven the green light. Viagra Connect will be available from a Damier growswith Remark5 Following aconsultation –launched earlier pharmacist without aprescription for men aged this year (OTC bulletin,7April 2017, page 18 years or older suffering from erectile dys- Venture Life to grow 6 9) –the UK’s Medicines andHealthcare prod- function. The maximum dose is one tablet a global OTCoffering ucts Regulatory Agency(MHRA) approvedthe day,with apack size of up to eight tablets. Phoenix increases7reclassification of sildenafil50mg film-coated Theapprovalwill be areal boon to Pfizer’s presenceinSerbia tablets from prescription-only medicine (POM) Consumer Healthcareoperation, which is cur- ZurRosesnaps up another rival7 to pharmacy(P) status. rently under“strategicreview”. Pfizer will make The MHRA–which pointedout that other adecision on whetherto sell theunit next year GENERAL NEWS medicines containing sildenafil would still be (OTC bulletin,20October 2017, page 1). GSK suveysCanadians 8 available on prescription –confirmed to OTC Noting that it had approvedthe switch “fol- bulletin that generic 50mgformulations would lowing areassuring assessment of the safety FDAeases app focus 11 remain prescription-only unless and until they of Viagra Connect and advice from the UK’s Optimisation keytogrowth 11 successfully underwent asimilar switch procedure. Commission on Human Medicines”, the MHRA France investigates 14 Pfizer vere aled that it wasalready “work- pointed out that the product would only be sold OTCsale monopoly ing on plans” to introduce OTCsildenafil – after adiscussion with apharmacist. under the brand name Viagra Connect –in Continued on page 8 MARKETING NEWS DocMorris launches 15 chronic illness app WBAbreaks intoChina GSK keeps hands clean 15 algreens BootsAlliance (WBA) is pois- Headquartered in Shanghai, GuoDaoperates ASA clears Nurofen 16 Wed to break into China’sretail phar- more than 3,500 pharmacies in 70 cities of misleading TV ad macymarket by grabing aminority stake across China and is the country’snumber one ACCC goes forVoltaren 16 in the country’sGuoDa drugstore chain. pharmacychain by sales. Under the terms of the deal, WBAwill pay Describing GuoDa as “China’sleading phar- REGULARS Sinopharm Accord CNY2.77 billion (C355 mil- macy chain”, WBApointed outthat the drug- Events –Our regular listing 17 lion) to take a40% stakeinits subsidiary Sino- store operator had been seeking outside invest- People –Bayer announces 24 pharm HoldingGuoDaDrugstores. Thetrans- ment to support its strategy for “expansion newUKOTC head action is subject to regulatory approvaland across the country”. GuoDa waslooking to other closing conditions. Continued on page 5 Connect with us on: Twitter LinkedIn OTC-bulletin.com Youfocus on GREA V T consumer healthcare ALUE Indiv idu subscrip al So do we ... tio are onl ns y Letus bring you thenews £995 that matters to your industry

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Mergers &Acquisitions Nestlé makes Atrium move

estlé has signalled its intention to become Science division, which offers “science-based Naforce in consumer healthcare by acquir- nutritional solutions” direct to consumers and ing Canadian supplements specialist Atrium through healthcare professionals. Innovationsfor US$2.3billion (C1.95 billion) Commenting on the deal, GregBehar,Nestlé fromagroup of investors led by PermiraFunds. Health Science’schief executive officer,said Subjecttoregulatoryapproval,the transaction is Atrium’sbrands “naturally complemented” expected to close in the first quarter of 2018. Health Science’sConsumer Care portfolio. Describing Atrium as a“global leader in “Atrium’sportfolio will extend our product nutritional health products”, Nestlé said the range with value-added solutions such as pro- deal supported its “pursuit of growth oppor- biotics, plant-based protein nutrition, meal re- The Wobenzym Njoint-health supplement tunities in consumer healthcare, complement- placementsand an extensivemultivitaminline,” bulletin,6October 2017, page 5). ing the company’sfocus on its high-growth Behar noted. “Atrium’sestablished brands are in Prior to itstakeoverbyNestlé, Atrium in late food and beverage categories”. attractivecategories andhavethe potential for November struck astrategic partnership with Quebec-based Atrium wasexpected to gen- continued stronggrowth as part of Nestlé through Chinese cross-border e-commerce platform Net- erate turnoverof“almost US$700 million” in category, channel andgeographic expansion.” Ease Kaola to gain better access to China’s grow- 2017,Nestlé noted,from sales in morethan50 Thedeal alsogaveNestlé afoothold in the ingmiddle class consumer base. countries across North America, and Asia. “fast growing” segment for “organic andnatu- Atrium’sbest-selling line, the Garden of ral supplements”, Behar said. Deal with NetEase Life organic supplements range, wasthe “num- Peter Luther,Atrium’spresident and chief The Canadian firm said striking adeal with ber-one brand in the natural supplements indus- executive officer, said the firm was“looking for- one of China’s“fastest growing e-commerce try in the US”, Nestlé claimed, while the Pure ward to continued growth as part of Nestlé”. companies” would enable Atrium to expand its Encapsulations hypoallergenic supplements line “Nestlé will provideAtrium with the resources limited presence in the East Asian country. wasthe “number-one recommended brand in to accelerate the growth of our brands,”Luther Atrium entered theChinese market in 2016, the US practitioner market”. added, “and to reach more consumers globally.” by establishing wholly-owned subsidiaries in Both brands are also available in China, as Nestlé’sacquisition of Atrium comes six Shanghai and Hong Kong. is the Wobenzym supplement line, which is months after the Swiss food and drinks giant Expanding on the rationale behind the agree- claimed to “promote joint health and help re- committed to growing its presence in the global ment, LuthersaidNetEase Kaola’sunderstand- lieve everyday aches and pains”. consumer healthcare market (OTC bulletin,21 ingof“shopperinsight” and “purchasing behav- Atrium’sEuropean portfolioincludes theAOV July 2017, page 7). iour” would help Atrium to tap into the “huge alternative medicine line, Orthica probiotics Commenting on this strategy in October, potential” of the Chinese market. and Minami omega-3 range, as well as Pure Nestlé’schief executive officer,Mark Schneider, Atrium’sbrands –such as Wobenzym and Encapsulations and Wobenzym. said the companywas interested in “anything Garden of Life –offered “unique benefits” for Nestlé noted that upon closing Atrium’s thatisclose to our core skillsetaround nutri- those Chinese consumers “looking for more management team would remain in place and tion and skin, and anythingthatgives us astrong- natural, clean and provensupplements from the it would incorporate thebusiness into its Health er presence in the drugstore channel” (OTC international market”, Luther claimed. OTC

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15 December 2017 OTC bulletin 3 OTC COMPANY NEWS

Mergers &Acquisitions Mergers &Acquisitions Euroapotheca Alliance snaps up creates chain atvia’s Euroapotheca said it was poised to Vamousse range Lbecome a“leading” player in the Nordic pharmacy market after signing adeal to form lliance Pharma is poised to grow its anew wholly-owned pharmacy chain in . Apresence in the global consumer health- The -based wholesaler and retailer care market by snapping up the Vamousse has entered into an agreement to acquire the head-lice treatment from US-based development Apoteksgruppen virtual pharmacychain from the firm TyraTech. Swedish government for an undisclosed sum. Under the terms of the deal, UK-based Noting that Apoteksgruppen’snetwork com- Alliance will acquire the global rights to Va- prised 189 Swedish pharmacies, Euroapotheca mousse for an initial consideration of US$13.0 said it had signed deals to acquire 156 stores million (C10.9 million) and adeferred contin- from their independent owners, plus three gencyconsideration of up to US$4.5 million. The Vamousse head-lice range directly-owned outlets, allowing it to establish Subject to approvalbyTyraTech’ssharehold- Commenting on the buy, John Dawson, Alli- awholly-owned chain. The remaining 30 ers,the transaction is expected to close “before ance’s chief executiveofficer,saidthe firmwas pharmacies would continue to operate under 31 December 2017”. “delighted” to gain Vamousse, which would the Apoteksgruppen name butremain inde- The Vamousse line –which comprises a become the company’s“third major international pendently owned, Euroapotheca noted. head-lice treatment mousse and aprotective growth brand”, alongside the Kelo-Cote scar treat- Following completion of the deal, Euro- shampoo –generated sales of US$6.6 million ment andMacuShield eye-health supplement. apothecaclaimed thatitwould operate the fourth in 2016, with agross profitofUS$4.6 million. “Vamousse will leverage our current infra- largestpharmacy chain in Sweden, with amarket On ageographical basis, the US accounted structureasitfits well into our growingUK share of approximately 9%. for around 83% of Vamousse’sannual sales, consumer business, whilst expanding our foot- Raimonda Kižien˙e,Euroapotheca’schair- TyraTech pointed out, with the UK generat- print into the US,”Dawsonpointed out. “The man and chief executive officer,saidher firm ing the remainder. brand will also benefit from added distribution was“excited” to work with Apoteksgruppen’s TyraTech claimsthat Vamousse kills“100% boththrough our EuropeanUnion (EU) affiliates managementteamto“capitaliseonthe growth of lice and eggs within 15 minutes of contact” and through our international partner network, opportunities in the Swedish market”. with “no need to re-treat”. whichoperates in over90territories worldwide.” “By working together,wesee significant scope DescribingVamousse as an “innovative,pesti- Speaking to OTC bulletin earlier this forsynergiesinsuch areasasprocurementand cide-free range of consumer healthcare products year,Dawsonnoted that Alliance wasback in private label development,”Kižien˙einsisted. for the prevention and treatmentofhuman head the market for acquisitions after completing “Euroapotheca will deployits extensive lice”, Alliancesaidthe brand’s “unique physical the integration of alarge portfolio of brands pharmacyretail knowledge to ensure the suc- mode of action” had helped it grow“signifi- from Sinclair IS Pharma (OTC bulletin,7 cessfuldevelopmentofApoteksgruppen going cantly” ahead of its category in the US. April 2017, page 4). OTC forward, both organically and through selec- tive acquisitions,” she explained. “Additionally, Business Strategy/First-Half Results we are impressed with the existing high-quality franchise model of Apoteksgruppen and view Jacobson plots Asia expansion anumber of attractive opportunities to lever- age this in our other markets.” ong Kong’s Jacobson Pharma is working ances” in theAsia-Pacific region “with aviewto Kižien˙epointed out that the acquisition of Hto grow the reach of its consumer health- expanding the firm’sgeographical reach and Apoteksgruppen formed a“keystep” in Eu- carebrandsoutside itsdomestic market. market presence” (OTC bulletin,20October roapotheca’sstrategy “to become the leading Reporting its financial results for the six 2017, page 4). pharmacynetwork in the Baltics, Nordics and monthsended 30 September 2017,Jacobson Turning to its first-half results, Jacobson re- Centraland Eastern Europe (CEE)”. Oncethe said it wastargeting the “geographical expan- ported turnoveratits ProprietaryMedicinesup deal wascompleted, Euroapotheca would operate sion” of itsProprietaryMedicines unit –which by 76.2% to HK$121 million,thankstobetter anetwork of morethan600 pharmacies across houses its OTCand traditional Chinese medi- sales of the Ho Chai Kung pain-relief line and six markets, she noted,generating annualsales cine(TCM) products –“into strategic markets the impact of acquisitions. of around C750 million. in theAsiaPacific region”,such as Taiwan and Jacobson expanded Proprietary Medicines Taking the helm of Euroapotheca in Octo- certain South-East Asian countries. earlier this year by acquiring three OTCbrands ber,Kižien˙eannounced thatshe would work to A“dedicated” business development team from Ling Chi Medicine (OTC bulletin,3 develop the firm by seekingavo “f urable ex- hadbeenput together,Jacobsonnoted, “to pur- February 2017, page 2). pansion possibilities abroad”. sue marketevaluations andtoexpedite market Proprietary Medicinesaccounted for16% of “Weconsider business expansion the largest entry and regulatory clearance”. Jacobson’stotal sales in the six months, which priority of our group,”Kižien˙esaid. “Wehave In October, thefirm raised HK$500 million advanced by 29.1% to HK$743 million. The aclear direction and an action plan, which we (C54.3 million) which it said would be used for majority of the remainder wasgenerated by intend to implement.” OTC both acquisitions and to form “strategic alli- its Generic Drugs unit. OTC

4 OTC bulletin 15 December 2017 COMPANY NEWS OTC

Mergers &Acquisitions Business Strategy Damier grows HRA Pharma eagerly with Remark seeking acquisitions amier–the investmentfundled byYvan DVindevogel–has movedastep closerto achieving its ambition to top C100 million in RA Pharma is aggressively seeking out to double the brand’ssales in the next four years annual sales by acquiring for an undisclosed Hacquisitions to help it become one of the by building on its strong position in Europe sum Dutch consumer healthcare playerRemark. fastest-growing OTC companiesinthe world, –where it holds the number one position in Noting that Remark generatedturnoverof accordingto the firm’spresident andchiefex- the blister-care category –and expanding its “more than C35 million” in 2016 –fromsales ecutive officer David Wright. reach into newmarkets outside the region. of its proprietary and third-party consumer Speaking in avideo message to delegates Noting thatthe company hadachieved“high healthcare and cosmetic brands–Belgium-based at the 12th Annual CeutaHealthcare Interna- double-digit”sales growth in 2017 –drivenby Damier said the deal would help it reach its tional Alliance Conference, Wright –who took EllaOne –and wastargeting the same in 2018, C100 million target “in the near future”. Cur- chargeofHRA in April (OTC bulletin, 7April Wright insisted that HRA wason track to be- rently,Damier’ssales are around C70 million. 2017, page 23) –saidthat the acquisition of come one of the “fastest-growing OTCcompanies Yvan Vindevogel, Damier’s chief executive the Compeedskin-care rangefromJohnson& in the world overthe next fewyears”. officer,saidthe acquisition of Remark “com- Johnson(J&J) earlier thisyear (OTC bulletin, Established in 1996, HRA has historically fo- plemented” his firm’sgrowth strategy. 6October 2017, page 8) represented the first cusedonwomen’shealth, achieving acentralised “With its diversified portfolio,Remarkwill in aseriesofdeals that he envisioned would switch across the European Union (EU) in 2015 of contribute to the development of the other give the France-based firm a“platform to be- EllaOne (OTC bulletin,16January 2015, page 8). companies in ourgroup,”insisted Vindevogel, come an OTCcompanyofsome size”. Late last year,HRA announced its plan to “whilst benefitting from Damier’sintimate Backed by private-equity owners that snap- switch an oral contraceptive to OTCstatus for market knowledge and expertiseinthe sector.” ped up HRA last year (OTC bulletin,4March the first time in the US in partnership with “After the acquisitionsofFlinndal, Purasana 2016, page 7), Wright said that the firm had Ibis Reproductive Health (OTC bulletin,13 and Bärbel Drexel, Damier continues to ac- developed an “aggressiveacquisition strategy” January 2017, page 4). tively develop its platform in the growing and that would build upon Compeed –which he HRA said at the time it would work with underdeveloped consumer healthcare market revealed the companywould take full man- Ibis –anon-profitresearch organisation for re- which still offers great potential for consoli- agement of in February 2018 –and the firm’s productive health –to“conduct the research dation,”headded. EllaOne emergencycontraceptive. neededand submitan application to the US Food Established in 1989, Remark distributes its Describing Compeed as a“once in alife- and DrugAdministration (FDA) to make abirth- products in its home market and across anum- time asset”, Wright said that the firm planned control pill available OTC”. OTC ber of other European countries. The firm’scon- sumer healthcare portfolio includes the Daro cough and cold range, Sanalgin analgesic and Mergers &Acquisitions the Zarqa skin-care line. Damier has been on an acquisition spree in WBAbreaks intoChina 2017, snapping up both Purasana and Bärbel Drexel, in addition to Remark. Continued from front page “strategic investor” in GuoDa. In June, Damier grabbedGerman vitamins, takeadvantage of ongoing healthcare reforms “Webelieve that we can positively contribute minerals and supplements (VMS) specialist in China, WBAnoted, and the “increasing im- to GuoDa’scontinued successful development Bärbel Drexelfromprivate-equity firm Finatem portance of the pharmacychannel”. with our globalpharmacyexpertise,”Pessinain- for an undisclosed sum (OTC bulletin,16June Commenting on the rationale behind the deal, sisted. “Wehavehad apresence in China for 2017, page 3). aspokesperson for WBA OTC bulletin said around 10 years, and we are excited about the Bärbel Drexelwas “one of the keyplayers” that the time wasright to enter the Chinese opportunity to further invest in the country’s in the mail order ande-commerce direct-to-con- pharmacymarketasgovernment reformswere fast-growing retail pharmacysector.” sumer marketing of VMS products in Germany, transforming the healthcare landscape. WBAholds a50% stakein Guangzhou Damier noted at the time, adding thatthe com- Dispensaries were beginning to move from Pharmaceuticals–one of China’s largest phar- panyhad achieved a“soundlevel of profitability”. hospitals into pharmacies, the firm pointed out, maceutical wholesalers (OTC bulletin,15Febru- Four months later,Damier acquired for an which wasexpected to create “significant op- ary 2008, page 2) –and owns 12% of whole- undisclosed sum Belgian dietary supplements portunities” in retail pharmacy. saler Nanjing Pharmaceutical (OTC bulletin, and health foods specialist Purasana (OTC Asked whyithad chosen to invest in GuoDa, 10 October 2014, page 7). bulletin,20October 2017, page 3). WBAsaidithad been attracted by the Chinese The US wholesale and retail giant has been Describing Purasana as the “Belgian market chain’saspiration to “diversify its offering com- looking to establish apresence in China’sre- leader in high quality health foods, food sup- pared to itscompetitors”. WBAwas “well posi- tail pharmacymarket for some time. In January, plementsand organic products”, Damier noted tionedtoprovide its significantexpertise to Guo- Pessinarevealed thatWBA had been “veryact- at the time thatthe company marketed its port- Da and support its growth ambitions”, it added. ive” over the past fewyears in China in an effort to folio in 15 European countries “with export Stefano Pessina, WBA’schief executive of- acquire astake in a“big pharmacy chain” (OTC sales continuously increasing”. OTC ficer,saidhis firm waspleased to become a bulletin,13January 2017, page 7). OTC

15 December 2017 OTC bulletin 5 OTC COMPANY NEWS

Business Strategy Business Strategy J&J wants VentureLifetogrow innovation globalOTC offering ohnson and Johnson (J&J) Consumer is Jseeking innovative digital solutions to pro- enture Life is in the market foracquisition mote “better skin-care outcomes for consumers Vopportunities as it looks to bolsterits pres- around the world”. ence in the global consumer healthcare mar- Working in collaboration withJ&J Innova- ket, according to the firm’s chief financial officer tion, J&JConsumer saiditwas searching for Adrian Crockett. students, entrepreneurs, researchers and start- Speaking to OTC bulletin,Crockett said up firms developinginnovative devices which the UK-based self-care specialist wason the could “tackle the toughest skincare challenges”, look out for both companyand product acqui- suchasacne,eczemaand photoageing. sitions in numerous OTCcategories. Launching its ‘Digital Beauty QuickFire Areas of interest for Venture Life –which Challenge’, the US-based manufacturer said focuses on “developing, manufacturing and VentureLifeisinthe marketfor deals it wasoffering aprize of up to US$50,000 commercialising products for the ageing pop- (C42,200) to developers working on innovative ulation” –included, butwere not limited to, Life’sstrategy is focused on “providing inno- skin-care products.The winner of thechallenge companies or products covering the cardio- vative products for the international consumer would receive J&J’ssupport to develop and vascular,dermatology,diabetes and gastroin- healthcare market, deliveredthrough an interna- commercialise their idea, the firm said. testinal categories, Crockett explained. tional network of sales and marketing partners”. J&J explained that winners would also be Opportunities within the gynaecology,neu- The company’sproduct range and pipeline granted admission to its Consumer Experience rology,metabolism and sleep categories would comprises medical devices for onychomycosis, Centre,where theywould be supportedthrough also be carefully considered, he noted. rosacea and proctology. the design and execution of their product. Venture Life also offers food supplements Adding to the incentivesfor applicants to Seeking established brands forloweringcholesterol and maintainingbrain enter the QuickFire Challenge, J&J said that VentureLifeideally wanted to acquire “est- function, as well as dermo-cosmetics for ad- winners would also gain access to aJ&J Inno- ablished OTCbrands with asuccessful sales dressing the signs of ageing. vation JLAB facility for one year where they history in afew keymarkets”, Crockett said. Some of its keybrands include the Original wouldbeable to tapintoapool of expertise. Noting that the firm currently operated in Bioscalin hair-loss treatment, UltraDEX oral- Noting the potential for digital innovation over40countries through its network of more health line and NeuroAge, afood supplement to “challenge the very definition of skin care than80 marketingpartners, Crockett saidVen- for cognitive function. itself”, president of J&J Consumer’sglobal ture Life wasseekingOTC brandsthat had the Through its Biokosmes operation based in Beauty business unit, Sebastien Guillon, said potential to be launched “globally or into many Italy,Venture Life provides development and he welcomed the “co-creation of meaningful, other international markets”. manufacturing services to firms in the medi- future forward skin solutions”. Headquartered in Bracknell, UK, Venture cal device and cosmetic sectors. OTC “By creating powerful connected experiences with those outside of our companywalls”, Guillon Mergers &Acquisitions emphasised, “we are able to build consumer preference,loyalty and unique personalisation.” The Digital Beauty QuickFire Challenge Piramal grabs gastrobrands seeks innovations which: ndia’s Piramal has expanded its Consumer added, and the companybelievedthat Digeplex IProducts division by acquiring the local gas- had the potential to become a“power brand” l Empower consumers to makebetter informed skin-care choices trointestinal brand Digeplex and associated prod- in the category. l Enable consumerstomonitor skin-triggers, ucts fromShreya Lifesciences for an undisclos- Nandini Piramal, the firm’sexecutive direc- such as pollution and ultraviolet raditation ed amount. tor, saidDigeplex andthe associatedbrands were l Effectively treat persistent skin-healthconcerns Digeplexwill join Piramal’sexisting domes- an ideal “strategic fit” for the companyand The deadline to submit an application to the tic gastrointestinal brands, which include the moveditcloser towards its goal of creating a QuickFire Challenge is 19 January 2018, and laxative Naturolax and antacid Polycrol. “powerful portfolio of OTCbrands in India”. the winnerswillbeannounced in spring 2018. Kedar Rajadnye, chief operating officer at Pira- “Our aim is to be asignificant player in J&J Innovation introduced the QuickFire mal Consumer Products,pointedout that today’s every business under the healthcare vertical with- Challenge to encourage “innovative solutions consumers led a“fast-paced andhectic” life- in Piramal,”headded, and acquisition is one of to advance safety in healthcare products” (OTC style, leading to agrowth in digestive problems. the important routestohelp us achievethis goal, bulletin,7April 2017, page 7). The business ThemarketinIndiafor OTCgastrointest- havingcompleted three acquisitions in theOTC also collaboratedwithJanssen Pharmaceutical inalproducts –comprising constipation, diar- space overthe past years.” earlier this year for its ‘Next-Gen Baby Box rhoea andappetite stimulantcategories–wasa Piramal expandedits domestic OTCportfolio QuickFire Challenge’ (OTC bulletin,16June “RS13,000 (C172 million)opportunity” which last year by acquiring four brands from Pfizer 2017, page 4). OTC hadadvanced by 11% in the past 12 months, he (OTC bulletin,27May 2016, page 7). OTC

6 OTC bulletin 15 December 2017 COMPANY NEWS OTC

Annual Results Mergers &Acquisitions Engelhard Phoenix increases sets record presence in Serbia nvestments in marketing and product develop- Iment have propelled German OTC specialist an-European wholesaler and retailer Phoenix Herzegovina, Bulgaria, Kosovo,Macedonia, Engelhard Arzneimittel to the next level and Psaid it had “significantly increased”its retail Montenegro and Serbia. helped it to achieve “remarkable” growth in its presence in Serbiabyacquiring the Goodwill The acquisition of Goodwill comes shortly 2016 financial year, according to the firm’s Apoteka pharmacy chain for an undisclosed sum. after Phoenix announcedthe openingofanew chief executive officer Richard Engelhard. Subject to approvalbythe Serbian com- logistics centre in Gotha, Germany. Reporting sales up by 15% in the year ended petition authorities, Phoenix will takeover Phoenix claimed that the C20 million, 31 March 2017, Engelhard said the recently- Goodwill Apoteka’s138 pharmacies, increasing 10,000sqmGotha site –which supplies phar- released figures indicated that the slfirm’ ong- its network in the country to over300 outlets. maciesinthe Thuringia and Saxonyregions – terminvestmentsoverthe past decade had helped wasits “largest and most modern sales and it reach newheights both domestically and inter- Rebranding planned logistics centre”. nationally,with the firm wbno oasting brands The Goodwill pharmacies will be renamed “From Gotha, delivery to our customers in in over 100 markets. under Phoenix’ Benu brand, which covers its central Germanywill be even faster and more Thesuccessofthese investmentswas clear, existingpharmacies in Serbia, as wellasthose reliable,”commented Windholz. he noted, with sales rising from C48.8 million in the Netherlands and Switzerland. The launch of the Gotha facility marks the in 2006 to C117 million in 2016. In addition to its Benu chain, Phoenix also second time this year Phoenix has invested in As aresult of this“continuously increasing” supplies health products and servicesto Serbian its logistics network. demand, Engelhard revealed that the family-run independent pharmacies as part of its Betty In April, Phoenix opened alogistics cen- company–nowinits fifth generation –was co-operation programme. tre in Belgrade, which it said would connect nowbuilding a“state of the art” productionfacil- “With the addition of Goodwill,weare further wholesalers and retailers in Central and Eastern ity in Niederdorfelden, Germany. strengtheningour retail presence in Serbia, and Europe (OTC bulletin,7April 2017, page 5). Commenting on the company’ssuccess over are clearly expanding our leading position as Phoenix will hope that the Gotha new-build the past decade, Engelhard said shaking up the an integrated healthcare provider in South- helps the firm respond to the “increased pres- firm’sstrategy in twokey areas had drivengrowth. East Europe,”commented OliverWindholz, sure” on margins in Germany, which it citedasa Firstly, Engelhard hadinvested in “targeted” Phoenix’ chief executive officer. contributing factor to the firm’spre-tax profit marketing foranumber of its coreOTC brands. While Phoenix was“strongly growing” its fall in its financial year ended 31 March 2017 At the beginning of last year,the firm launched presence in the South-East European retail (OTC bulletin,16June 2017, page 4). an internationalmultimediamarketing campaign market, the companyalso claimed to be the Pre-tax profits at the firm fell by 24%to for its 70-year-old Prospan herbal cough syrup “market leader” in logistics and wholesale in C243millioninthe12months,despitesalesad- brand (OTC bulletin,5February 2016, page the region –operating in Albania, Bosnia and vancing by 5.1% to C24.4 billion. OTC 18). “Breathe freely again with Prospan” was the tagline of the campaign. This push had helped cement Prospan’srepu- Mergers &Acquisitions tationasthe “mosttrustworthy OTCbrand for Zur Rose snaps up another rival cough medicines”, Engelhard claimed. In addition to the marketing strategy, in- witzerland-based supply chain disruptor Aaachen/Heerlen region of Germany, andasa vestments in product development had also SZur Rose Group is set to expand further result would “achieve synergyeffects along the contributed to the firm’sgrowth, it noted. its position in the German mail-order pharmacy entire value chain”. As evidence of such innovation,Engelhard market with the acquisition of Germany- AccordingtoZur Rose, Vitalsanagenerated pointedtothe “successfullaunch”ofa‘junior’ based ‘pure play’ competitor Vitalsana. turnoverofaround C30 million in 2016, “primar- addition to itsIsla range of throat lozenges (OTC Subject to approvalbycompetition author- ily” from the sale of non-prescription drugs. bulletin,7October 2016, page 18). ities, Zur Rose will takeovertheVitalsanamail- Ströer acquired Vitalsana for C4.5 million Apleasant strawberry flavortoimprove com- orderpharmacy–aswell as its associated ser- last year (OTC bulletin,23 September,2016, pliance in children wasthe keypromise by Engel- viceproviderApDG–fromGermanadvertising page 2). Commenting on its decision to offload hard to German consumers when launching the and media firm Ströer for an undisclosed sum. Vitalsana, Ströer said it wanted to focus on its product last year. As part of the agreement, Zur Rose ex- “core business areas”. Expanding on its performance in 2016, Engel- plainedits Germany-focused subsidiaryDoc- Zur Rose’slatest acquisition comes one hard said increased demand for its “interna- Morris wouldenter intoa“strategic partnership” month after the firm entered into a“co-operative tionally recognised” OTCbrands had driventhe with Ströer,toexploit the latter’s“wide-ranging venture”with Euraponto strengthen itsposition double-digit growth in turnover. media offerings,performance marketing options in Germany(OTC bulletin,3November 2017, Isla and Prospan in particular had exhibited and data-focused products”. page 7). “strong” growth overthe 12 months, Engelhard Zur Rose pointed out that through the ac- Initially,Zur Rose will takeoverEurapon’s pointed out, with sales advancing by 20% and quisition, it would be “pooling asignificant wholesale operations, which will continue to 13% respectively. OTC proportion” of its mail-order business in the supply Eurapon’sonline pharmacy. OTC

15 December 2017 OTC bulletin 7 OTC GENERAL NEWS

Market Research Switches GSK surveys Pfizer celebrates Canadians lmost two-thirds of Canadians suffer from UK Viagraswitch Aweekly body pain according to Glaxo- SmithKline (GSK) Consumer Healthcare’s 2017 Continued from front page health analyst, told OTC bulletin thatthe reclassi- Global Pain Index report (GPI), which also “Pharmacists will be able to determine wheth- fication of sildenafil in theUK wasthe “most sig- revealed adeeper lack of knowledge surround- er treatment is appropriate for the patient and nificant switch in recent memory” and represented ing pain . can give advice on erectile dysfunction, usage a“major disruption to the global OTCmarket”. The social and economic impacts of pain of the medicine, potential , and if “Euromonitor estimates that in the first year touched “almost every aspect” of Canadians furtherconsultation with ageneral practitioner of the drug’savailabilityOTC,itislikely to lives, the firm said, adding that head and body (GP) is required,”the MHRA explained. generate more thandouble the sales of the whole pain waspreventing Canadians from “living Pfizer had produced achecklist that phar- of the Cough, Cold, and Allergy Remedies their livesto the full”. macists could choose to use when supplying (CCA) category,” Roberts insisted, “which cur- Expandingonthe emotionalimpactsofpain, the producttodetermineaman’ssuitability,the rently occupies the top spot in OTCsales at GSK explained that it had adetrimental affect agencynoted, with additional advice to the pa- £726 million (C826 million) in 2016.” on an individual’sperception of their age, at- tientprovided on the product label and leaflet. “Even more important than the changes tractiveness and ability to parent. Theuse of the checklist, in combination with a the switch will bring to the UK market is the pharmacist’sprofessional judgement, would, domino effectthatislikelytooccur as other Anxious feelings the MHRAinsisted,“minimise the risk of in- major marketsconsider whethertomakeViagra More than 70% of those Canadians who direct danger arising frommissed diagnosisof available OTC,”Roberts claimed. “In the US, suffered from weekly pain, the report revealed, underlying disease”. prescriptions for erectile-dysfunction drugs have alsoexperienced feelings of anxiety as aresult, “Viagra Connect will not be sold to those fallen in recent years as the pills have become the companyexplained. with severe cardiovascular disorders; at high increasingly unaffordable, butthis decrease The GPI also found that pain had led to a cardiovascular risk; liverfailure;severe kid- in saleswould be easily reversed if Viagra were US$7.1 billion (C6billion) annual hit “on the neyfailure; or taking certain interacting med- switched to OTCstatus and would likely be Canadian economy,asworkers lost an average icines,”the regulator added. themost significant disruptor to the OTCspace of 1.8 working days duetopain, whileperform- Making Viagra Connect available without a the US has ever seen.” ancedippedfor thosewho tried to work through prescription would “help direct men who might By approving Viagra Connect, the UK has their pain, GSK explained. not otherwise seek help into the healthcare sys- become the second major market to allowOTC On top of the social and economic impacts tem”, the MHRA claimed, “and away from the access to sildenafil. of pain, GSK said the report had uncovered a risks that come with buying medicines from Just under 18 months ago, allowed lackofadequateknowledge and understanding websites operating illegally”. men to buysildenafil without aprescription after of pain management amongst the Canadians. Erectile-dysfunctionmedicines were apopu- thecountry’smedicines regulator approvedan Only 31% of Canadianpeople surveyed were lar target for criminals selling unlicensed and application by manufacturer Adamed to sell “very” or “extremely” knowledgeable about the counterfeit medicines, the agencynoted. OTCits MaxOn Active sildenafilproduct,but risk associated with their , GSK Commenting on the successful switch, Dr at the lower strength of 25mg (OTC bulletin, pointed out,and despitethe popularityofOTC BerkeleyPhillips, Pfizer’sUKmedical director, 27 May 2016,page 1). pain medication Canadian consumers “don’t said the availability of Viagra Connect in phar- Prior to the ‘true’ prescription-to-OTC switch knowvery muchabout the treatments theyare macies would “offer men who are eligible a of sildenafil in Poland,wZ Ne ealand had come using most often”. newand convenient waytoaccess sildenafil”. closest to granting OTCstatus. Sildenafil, how- “Weunderstand some men may avoid seek- ever,remains partially restricted in the coun- Lackofknowledge ing support and treatment for this condition,” try.Itisstill aprescription medicine “except In particular,the GPI had exposed aspe- Phillips said, “sowebelieve giving them the when supplied by apharmacist who has suc- cific lack of knowledge surrounding topical option to talk to apharmacist and buyViagra cessfully completedthe approvedtraining pro- anti-inflammatories. Connect could be areal step forward in encour- gramme for the treatment of erectile dysfunc- Rather than engaging with the variety of dif- aging more men into the healthcare system.” tion in males aged 35 to 70 years” (OTC bul- ferent types of pain relief available, the report “Aserectile dysfunction maybeasign of letin,24October 2014, page 1). found consumers were more likely to “grab abot- an underlyingcondition such as diabetes, high Pfizer tried and failed to switch sildenafil tle of pills” from apharmacy. blood pressure, or heart disease,”headded, through the European Union’s(EU’s) central- Documenting the social and economic im- “there could also be awider benefit to public ised procedure in 2008 (OTC bulletin,28Nov- pacts of pain across 32 countries, the GPI report health in the long term.” ember 2008, page 1). waslaunched alongside the firm’s‘Better for Accordingtomarket researchfirm Euromon- The US firm withdrewits Viagra applica- Everyone’ campaignin March last year(OTC itor International, the approvalofViagraCon- tion in the EU following “some concerns” –in- bulletin,20October 2017, page16). The cam- nectwill provide asignificant boost to the UK cluding alack of medical supervision, potential paign supported GSK’srelease of its Voltarol OTCmarket and has the potential to trigger for unintentional misuse and possible abuse diclofenac based topical-analgesic brand (OTC similar switches in other countries. of the drug for recreational purposes –atthe bulletin,4March 2016, page 16). OTC Kenna Roberts, Euromonitor’sconsumer European Medicines Agency(EMA). OTC

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Market Research Time to explorethe Silk Road

modern-day SilkRoad is emerging and the west,”Horton stated. keyaccount management approach wasneed- Aproviding opportunities not only for western Taking tworecent success stories, Horton ed,”Hopkins explained, “while in less develop- brands to enter Asian markets, but for eastern notedthatJapan’sOtsuka hadtaken its Pocari ed countries you need to rely on bigger sales- brands to penetrate the west, according to Luke Sweat energy drink into ahost of newmarkets, forces, telesales and logistics.” Horton of marketentry specialistDKSH. first China then South-East Asia, before follow- Aprimary reason for the difference in ap- Speaking to delegates at the 12th Ceuta In- ing the Silk Road west and into the Middle East. proach,Hopkins said,was the distribution chan- ternational Alliance Conference in Lisbon, “In 2016, Otsuka sold overhalf abillion nels forhealthcareproducts,especially the phar- Portugal, Horton pointed out that trillions of bottles outside of Japan,”henoted. “Pocari Sweat macychannel. US dollars were being invested by anumber of will eventually arrive in Europe and will disrupt In developed markets, he continued, you had countries in the ‘Belt and Road Initiative’to the energy drink category.” the presence of keyinternational pharmacychains, create amodern day Silk Road using land and “If you can provide Otsuka with aroute to along with strong and organised local chains. sea routes, that would link east and west and cover market it is amassive opportunity,” Horton said. Furthermore, listings, prices and promotions 4.5 billion people. Tiger Balm wasasimilar success story,Hor- were all negotiated centrally,Hopkins noted, This initiative reflected the shift in economic ton claimed, butone which wasevenfurther with keyaccount management acrucial cogin power fromwest-to-east,hesaid,and western along the Silk Road. successfully penetrating this type of market. healthcare markets would be increasingly“disrupt- Atraditional Chinese medicine (TCM) by ori- On the flip-side, he added, in emergingAsian ed by eastern brands that want to export”. gin, the reach of the liniment brand had been built countries the presence of international pharmacy “There has been overthe past fewyears,” up by HawPar and wasnow availablein100 chains waslimited and instead manufacturers Horton explained, “an emphasis by Japanese and countries, Horton said. Despite having already had to deal with fragmented andsmall local chains. Korean firms on expansion west.” successfully disrupted anumber of markets, Haw In thesedeveloping markets, Hopkins said, TheKorean pharmaceutical manufacturers’ Parhad “aggressive expansion plans”, he added. sales function wasthe keydriverof success. association is targeting acompound annual “Every week,”Horton claimed, “I talk to However, things werechanging fast in certain growth rate (CAGR) in exports of 45% between brands that are very successful in Indochina emerging markets, Horton pointed out, highlight- 2014 and2020(see Figure1), “which is arise in and South-EastAsia and Italk to themprimar- ing Vietnam as aprime example. export sales from US$2 billion (C1.7 billion) to ily about howto expand not only into markets Noting thatVietnamhad apopulationof 100 US$20 billion in six years”, Horton revealed. in Asia, butEurope and the US.” million and wasone of the fastest-growing “This represented an incredibly aggressive ex- However, despite the ambitions of eastern economies in the world, Horton said that the pansionof exports,”heinsisted, “and not only into players to head west, Asia remained aland of dynamics at play meant that the market wasripe other Asian markets, butalso Europe and the US.” opportunities for western healthcare brands too, with opportunities for western healthcare firms. The companies looking to export already according to Howard Hopkins of Ceuta Asia. “In Vietnam, we are seeing aquickly urban- dominate their home markets, Horton pointed But companies needed to be aware of the ising population,”Horton stated, “and arapidly out, withonlyone of the top-10OTC companies vast differences between marketsinthe region, expanding middle class which is looking to take in Korea awestern-based firm. he added, noting that healthcare spending per control of their health.” “I’m in Korea every twomonths and DKSH head in Australia wasUS$100, while in Thai- “But, in terms of pharmacy it remains avery works with alot of these companies,” he con- land it wasUS$10. traditional country,” he noted.“With around22,000 tinued, “and the first topic on the agenda when In reality, Hopkins said, there were twotypes licensed pharmacies it is an extremely complex Isee them is expansion.” ofAsianmarket, developed and emerging, which logistical mission to get products to them.” “There is amassive opportunity to engage required different approaches. The majority of these pharmacies werealso with brands in Korea and other Asian markets “Indeveloped marketssuch as Hong Kong, what Horton called “traditional counter pharma- such as Japan that are alooking to export into Singapore, China and others asophisticated cies”, with products in white boxes stacked on shelves behind the counter.This offered“very Medical device exports Pharmaceutical exports W23.0 trn little opportunity for complexmodern category 25 US$20.8 bn management”, he noted. Yetthe market waschanging, Horton said, 20 and rapidly. W13.5 trn Already around 10 pharmacychains had US$12.2 bn emerged, Horton said, with the top six chains 15 CAGR* 45.4% operating atotal of 259 pharmacies primarily in Ho ChiMinhCityand Hanoi (see Figure2). 10 “Thenumber of chain stores,”heexplained, W1.8 trn W3.0 trn CAGR* “isset to increaseto1,000bythe endof 2018.” Korean won trillions 5 US$1.6 bn US$2.7 bn 28.6% CAGR* 12.2% “Pharmacity is one of the most ambitious W1.7 trn W2.4 trn chains,”Horton said. “Established by aUSdata US$1.5 bn CAGR* 6.7% US$2.2 bn 0 scientistcalled Chris Blank, the chainisset to 2009 2014 2020 *Compound annual growth rate open 10 stores amonth overthe next year.” Figure1:Exporttargets of the association of Korean pharmaceutical manufacturers (Source –DKSH) “Blank gave me an interesting insight into the

10 OTC bulletin 15 December 2017 GENERAL NEWS OTC

Key facts Number of stores Key market insights RegulatoryAffairs l Around10key 57 stores l One-stop-shop model FDAeases pharmacy chains l Consistent marketing, Still focused on Ho categorymanagement l 62 stores Chi Minh city and Hanoi and customer experience appfocus 55 stores l 200+ stores now. l Increased cost Plans for1,000 stores by he majority of mobile apps designed for the end of 2018 52 stores l Perceived as Tmaintaining or encouraging healthy life- moretrustworthy styles will no longer be regulated by the US l 23% sales growth by the 18 stores third-quarterof2017 Food and Drug Administration (FDA) if adraft guidance document gets final approval. 15 stores Underthe ‘Changes to Existing Medical Soft- ware PoliciesResulting fromSection3060 of the Figure2:OverviewofVietnam’spharmacychannel (Source –DKSH) 21st Century Cures Act’ draft guidance, the market,”Hortoncontinued. “Hepointedout that healthcare online,”headded, “and with many FDAwill no longer consider wellness apps and while he is opening all these stores, industry is people still not having easy access to healthcare certainother digital healthcareproductsasmedi- justcontinuing to sell products in Vietnam that professionals, digital is opening up healthcare to caldevices subject to agencyoversight. are geared towards traditional pharmacytrade.” millions of people.” Blankwas laying out achallengetoindustry, “Already8%ofthe populationhas purchased Outside scope of FDA Horton claimed, urging it to keep up with retail- somehealthcare products online,”Horton noted, The document, the FDApointed out, made ersand consumersand provide the modern prod- “and4%were interacting withhealthcare pro- it clear that certain digital healthcare technol- uct portfolios that chains likePharmacity can fessionals using digital technology.” ogies generally fell outside the scope of the properly manage. “The questiontokeep in mind,” Horton said, agency’sregulation. One disruptive force that might outpace even “would digital disrupt the standard develop- “Such technologies,”the agencysaid, “tend therate of change in Vietnam’s pharmacychannel, ment of the pharmacychannel as seen in oth- to pose alow risk to patients, butcan provide Horton said, wasdigital. er markets and leapfrog modern trade?” great value to consumersand the healthcaresystem Already,Vietnam wasaconnected country It wascrucial therefore, Horton said, to take by helping people manage their health.” with 72% smartphone penetration, he said, so even an omnichannel approach to these emerging The draft guidance forms part of the FDA’s in rural areas people were connected. markets to ensure that you fully takeadvantage wider Digital Health Action Plan, which was “Around 61% of peopleare researching of the opportunities theycould offer. OTC published earlier this year. OTC

Business Strategy customer-centric views –tens of thousands of the pharmacistshad been engagedbydifferent Optimisation keytogrowth parts of their organisation in different ways and without coordination,”herevealed. ptimising operating structures to better While there were manyaspects to creating a Tacklingthe relationship withthe con- Ounderstand both the consumer and how consumer-centric business, howabusiness han- sumer wasimportant,but so wasreflecting on your business is performing is key to sustain- dled ‘big data’wasakey element, Dabbs said. your ownbusiness performance, according to able, long-term success, according to industry “When you look at the attributes of big data, IQVIA’s Justin Hunter. experts at IQVIA. theyhavevery realimplications for consumer “Aswell as trying to become more consumer- In the first of aseriesofonline broadcasts healthcare decision making,”heexplained “and centric, companies need to simultaneouslygain from the consumer healthcare market intelli- while manyretail andfast-moving consumer- abetter and more aligned understanding of their gence specialist, Andy Tisman, global senior goods(FMCG)firmshavealready put in place ownbusiness to effectively manage perfor- principal,Consumer Healthcare at IQVIA, noted processes and systems to enable them to collate all mance,”Hunter claimed. that with market growth slowing, industry need- the attributes theyhaveabout aconsumer into one Over the past 12 months, IQVIA had con- ed to refresh howitapproached the consumer. place, OTCfirms are lagging behind somewhat.” ductedresearch withinthe industry to understand “A keychange, both for industry and also the more about what companies wanted from per- retail sector,ishow to dealeffectively with a Master DataManagement formance management, he explained, and had much more engaged and proactive consumer,” “Master Data Management(MDM) tools are discovered three consistentblind spots: lack of Tisman explained. “Weare nowseeingasitua- usedbytheseorganisations and advances in tech- organisational alignment; fragmented technol- tion where consumers don’tjust wait until they nology and capabilities allowthese platforms to ogysolutions; and limited scope of insights. are ill to address problems. Theyare becoming connect disparate sources of data,”Dabbssaid. Using this discovery,IQVIA had set to work much more proactive in managing their health.” “One consumer health client implemented a developing solutions, Hunter said, that would However, finding out the real truth of what MDM tool across Europe andinsodoing had help businesses bring together their internal consumers wanted waseasiersaidthan done, acentral viewofthe more than520,000 phar- experts, information and analytics before uti- according to Gareth Dabbs, IQVIA’s senior macistsoperating acrossthe continent.” lising technology to enable companiesto act. principal Technology Solutions, who added that “When theyconnected the activity data To listen to areplayof Optimising yourPer- the challenge wasto create a“consumer-centric from the different parts of their organisation formanceToday for Sustainable SuccessTomor- model and takeaconsumer viewofthe business”. theysaw for the first time the opportunity in row visit: tinyurl.com/yb3lxenv. OTC

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RegulatoryAffairs RegulatoryAffairs ECJ backs France investigates botanicals OTCsale monopoly he European CourtofJustice (ECJ) has dis- Tmissed acase accusing the European Com- harmacy’s monopoly on the sale of non- bricks-and-mortar pharmacies, theauthority said mission (EC) of a“failure to act” over the mas- Pprescription medicines in France is to be it intended to explore opportunitiesto open up sively delayed list of health claims forbotanicals. investigated by the country’scompetition auth- theonlinemarketfor OTCmedicines. It marks the second time the case –brought ority, as part of alarger sector enquiry on com- The development of the online market for by the German firms Bionorica and Diapharm petition in themedicinesarena thathas just been non-prescription medicines was“extremely limit- –has been rejected by the ECJ, with the court launched by the regulator. ed” in France, the authority pointed out, with ruling in 2015 that the EC had acted on the Noting that its previous recommendations sales only permitted on websites attached to delays and that neither Bionorica nor Diapharm on liberalising OTCdistribution in Francehad aphysical pharmacy(OTC bulletin,18Janu- had been harmed by the delays and thus had not beenimplemented –followingpublication ary 2013, page 8). Numerous “unjustified re- “no interest to act”. in 2013 (OTC bulletin,26July2013, page 17) strictions” were an “obstacle” to the develop- However, the firms appealed the ruling and in –the authority said thetime wasright to re- ment of online selling, the authority insisted. April2017,the case wasreturned to the ECJ by examine the market. More broadly,the sector enquiry will examine European Union (EU)advocategeneral Micka “In previous opinions, the authority recom- theways in which prices forbothreimbursable Bobek (OTC bulletin,12May 2017,page12). mended acontrolled opening to competition andnon-reimbursable medicines areset.Itwill of dispensing chemists’ monopoly on the sale resultina“purely consultative”opinion from No interest to act of non-prescriptionmedicines andarelaxation thecompetition authority. Having looked againatthe case and finding of the rules on online sales,”the competition Theauthority’s2013 proposals were not that the EC had failed to act on the botanicals authority stated. well receivedbyFrench self-medication industry issue,the ECJ ruledthat thecasewas inadmis- “France’sEuropean neighbours have start- associationAfipa. sible, believing that Bionorica had “no interest ed on this path.Inviewofthese developments, Addressing suggestions by theauthority to act” as the companyproduced herbal supple- the authority will examine this topic again, that the distribution of certain products could ments rather than food. and, among other things, explore avenues for be widened, Afipa warned of “considerable Responding to the ruling, Bionorica said it adapting dispensing chemists’ activity and dev- risks”and “threatstopatient health” thatcould wasa“defeat for customers and patients” as eloping supply in retail sales of pharmaceuti- be posed by moving away from the pharmacy it did not end the 10 year delay on assessing cals,”itadded. model (OTC bulletin,25October 2013, page 11). health claims for botanicals. Through the enquiry,the authority said it Emphasising the “essential role of the phar- TheEuropean Food SafetyAuthority (EFSA) would examine the creation of pharmacychains, macist” in ensuring the safety of self-medi- evaluated and rejected around 500 Article 13(1) therelaxation of therulesgoverning medicines cation, Afipa said that “unlikeinparapharmacies, health claims for botanicals, which led to the advertising andallowing “outside investment” pharmacists have teams oftrained professionals, Commission putting the work on hold back in in pharmacybusinesses. in daily contact with patients, that can offer 2010. While the EC announced afurther “re- In addition to reviewing the rules governing personalised advice” to consumers. OTC flection” on the issue in the summer of2012 (OTC bulletin,10August 2012, page 1),there RegulatoryAffairs has been no further action. NHS dumps herbals to save cash Botanicals treated differently The problemwas that botanical ingredients he National Health Service (NHS) in Eng- Blacklisting these products –and restricting were being treated differently under the food Tland will no longer recommend or pro- theuse of afurther 11 prescription-only products claims regulation than theywere under leg- vide “low value treatments” –including fish –would save theNHS in England £141 million islation covering traditional herbal medicines oil, herbal remedies and homoeopathy –and (C160 million) ayear,the authority said. (OTC bulletin,15October 2010, page 1). hasstartedaconsultation on cutting the num- NHS England will nowturn its attention to In response to the concerns, the EC an- ber of prescriptions issued for OTC treatments reviewing 3,200 OTCproducts that could also nounced in 2010 that the community list of such as paracetamol. be subject to prescribing restrictions (OTC permitted general healthclaims for foods would Citing “no clear or robust evidence” to bulletin,11August 2017, page 15). be established in twosteps. support their use, NHS England said that ho- The authority estimates that it could save The list for all substances other than bo- moeopathic products and herbal treatments £190 million ayear by cutting prescriptions tanicals would be adopted in asingle step, it should no longer be “routinely prescribed”. for such products, including analgesics, anti- explained, with claims for botanicals consid- Furthermore, antioxidants, chrondroitin, glu- pyretics, antifungal creams, cough and cold ered once the first step had been completed. cosamine, luteins, omega-3 fatty acid compounds remedies and laxatives. This has meant that while alist of 222 per- and rubefacients –excluding topical non-steroi- Afollow-up consultation on the initial list mitted health claims wasagreed in 2012, evalu- dal anti-inflammatory drugs (NSAIDs) –would of OTCproducts the authority recommends ating 2,078Article 13(1)general-function claims no longer be routinely prescribed, the health to be de-prescribed will be put out for consult- for botanicals has remained on hold. OTC authority said, due to “lowclinical effectiveness”. ation in 2018. OTC

14 OTC bulletin 15 December 2017 MARKETING NEWS OTC

Product Launches Product Launches GSK keeps DocMorris launches hands clean chronic illness app lean hands and targeted pain relief is Glaxo- CSmithKline (GSK) Consumer Healthcare’s etherlands-based online pharmaceutical promise to German consumerswith its Voltaren Nretailer DocMorris has released an “ad- ‘comfort applicator’ pain-relief gel. vanced self-help app” for the management of Available in 100g and 150g dosages, the firm chronic illnesses. claims that the Voltaren ‘pain gel with appli- The Chronic Match app enables German cator’ offers customers “targeted” pain relief patientssufferingfrom chronicillnessesto con- without the mess of atraditional topical gel. nect with other chronic illnesssufferersinGer- Through its“simpleand hygienic”delivery many, with the possibility of having aone-to-one mechanism, GSK notes, the pain relief gel – chat online. which contains 1.16% of the non-steroidal anti- “Not everyone likes to share in group situ- Chronic Matchaims to bring sufferers together inflammatory drug (NSAID) diclofenac –is ations,”commented DocMorris board mem- However, not everyone is happyabout Doc- absorbed “quickly and deeply” into the skin. ber Christian Franken. “Some people find it Morris’use of digitisation to disrupt what remains The launch is supported byatelevision ad- easier to confide in an individual.” avery traditional pharmacymarket in Germany. vertisement showing aman bending down, jump- “Withthe app,weoffer away to help patients The LiveChat technology wasalso behind ing on awall and crawling through ahole in a copebetter[withchronicillnesses]withintheir the firm’scontroversial “video consultation with fence while chasing after his family’spet rabbit. everyday lives,”headded. drug delivery service” in Hüffenhardt, asmall Meanwhile his daughter asks: “What hap- Patients must first create aprofile, adding town in ruralGermanywith just over2,000 res- pened to daddy’sback pain?”. The voiceover their name, age, gender,apicture, ashort de- idents (OTC bulletin,21July 2017, page 22). adds “Do you want to knowhis secret?” be- scription and also their diagnosis. Customers in Hüffenhardt wereadvised by fore answering the question with: “Voltaren “The user will then be shown matching DocMorris staffbased in the Netherlandsvia a pain gel, nowwith comfort applicator.” profiles that he or she can rate positively or video interface. Medicines were then released Ascene showing howthe applicator works negatively,” explained Franken. “If twousers and handed over immediately in-store. rate each other positively,theycan chat.” The outlet wasclosed in June after aseries DocMorrisnoted that the app met the “high- of interventions by the Baden-Württemberg est safety standards”and that data“wasprotected pharmacyassociation,resulting in atemporary against unauthorised access by third parties”. injunction being issued by the Mosbach district The newapp –which would “run indepen- court. After fivemonths, the court will finally dently” under the Chronic Match brand –comple- announce its decision on the 21 December. mented DocMorris’ existing suite of e-health DocMorris also has aMobile Pharmacyapp, Voltaren ‘comfortapplicator’ applications, the firm added, and formed part of which it claimed helped patients –and whole follows, with the voiceoversaying “simplyopen, its Pharmacy4.0 digital strategy. families –tomanage their personal medica- squeeze and apply,and hands stay clean” while As part of this digital strategy,DocMorris tion plans, with the option of submitting these moving to ashot of apair of clean hands. said it also offered avideo-based ‘LiveChat’ plans to physicians for advice. GSK revamped its Voltaren range at the begin- service, which enabled patients to speak to qual- Speaking to OTC bulletin earlier this year, ning of thisyearto create “stronger branding” for ified pharmacists and receive “comprehensive and Walter Oberhänsli, chief executive officerof the brand and offer “easier navigation within the discreet advice” from the comfort of their homes. DocMorris’ parent companyZur Rose Group, portfolio” (OTC bulletin,13January2017, page Thefirm claimedthat the servicewas “unique” said the apps “enabled patients to takeadvant- 16). Germanywas one of the first markets to see and had “pioneered digitised consulting” in the age of data for self-determination within their the launch of the global packaging change. German healthcare market. owndrug therapy” (OTC bulletin,8September The packaging revamp also sawthe GSK “Weare convinced that trust in the digitisa- 2017, page 24). logoadded tothe pack, after the firm took con- tion of thehealthcare industry will increase if Furthermore, he added that “big data” gen- trol of the brand through its joint venture with innovative pharmaceutical servicesare used with erated through the apps could “makehealth pro- Novartis (OTC bulletin,6March 2015, page 1). the involvement of the public,”explained Doc- cesses more foreseeable” and the “prevention and The Voltaren range in Germanyalso in- Morris’ chief executive officer Olaf Heinrich. prediction of illnesses easier” in thefuture. OTC cludes the original Schmerzgel, Schmerzgel Forte, Dolo tablets and Dolo liquid capsules. Each product features aspecific colour stripe IN BRIEF to help consumers navigate the range. In theyearended September2017,Voltaren GLENMARK has launched anicotine-replace- only variant.Sujesh Vasudevan, head of Glen- wasthe top-selling GermanOTC brand through ment gum under the Kwitz name in India. The mark in India, the Middle East and Africa, said both communityand mail-orderpharmacy, ac- product would be available in twostrengths, Kwitz was“not just aproduct, butahelping cording to Insight Health (OTC bulletin,24Nov- theIndianfirm said,a2mg nicotine product that hand and support system for those who want ember 2017, page 14). OTC would be sold OTCand a4mg prescription- to quit smoking completely”. OTC

15 December 2017 OTC bulletin 15 OTC MARKETING NEWS

Legal Cases Marketing Campaigns ACCC goes ASA clears Nurofen forVoltaren of misleading TV ad he AustralianCompetitionand Consumer TCommission (ACCC) has launched alegal eckitt Benckiser’s (RB’s) UK television The ASA said it “considered that consumers casealleging that GlaxoSmithKline (GSK) Aus- Radvertisement forNurofen did not mislead- would understand the keymessage of the ad- tralia and Novartis Consumer Health Australia ingly implythatthe productspecifically targeted vertisementtobeabout choice, specifically about made false or misleading claims in advertising headache pain, the country’s Advertising Stand- choosing Nurofen overparacetamol”. for the firms’ Voltaren Osteo Gel and Voltaren ards Authority (ASA) has ruled. In responsetothe complaint thatithad mis- Emulgel pain-relief products. The advertisement featured clips, which jux- led consumers,RBinsisted thatitdeliberately In acasethatechoes the ACCC’s successful taposed ‘bad’ and ‘good’ versions of the same excluded pictures of the head or neck and chose pursuitofReckitt Benckiser(RB)for making activities, including whisking eggs by hand ver- to useanon-specific graphic, in ordertoavoid misleading claimsabout its Nurofen Specific susanelectric mixer. implications that Nurofen wasspecifically dev- Pain range(OTC bulletin,28April 2017, page Themontage culminated inahand selecting eloped to combat headache pain. 16), the commission has accused GSK and Nurofen overparacetamol,during which avoice- RBaddedthattheobjectiveoftheadvertwas Novartis of making claims that the Vo ltaren Osteo overstated:“Sometimes thechoice is obvious… to demonstrate to consumers howNurofen op- Gel product had been specifically formulated whenitcomestoheadache relief chooseNurofen.” erated in delivering more effective pain relief for treating osteoarthritis conditions and was Apack of Nurofen tablets wasshown su- compared to the mode of action of paracetamol. moreeffective than the Emulgelproduct, when perimposed on abackground of blue nerves, The manufacturer responded tothe specific in fact the twoproducts were identical. which then approached ared nerveand turned critique of its reference to “headache relief”, Price sampling had found that the OsteoGel it blue. This wasaccompanied by avoiceover: claiming it wasused as an example of the product had oftenbeensold atapremiumcom- “Nurofen acts at the source of pain and pro- type of pain relief Nurofen provided and pro- pared with the Emulgel products, the ACCC vides faster and more effective headache re- vided apoint with which to demonstrate the pointed out, adding that it believed that both lief than standard paracetamol.” effectiveness of Nurofen overparacetamol. Novartis and GSK –which took overmarket- While acknowledging that the advertisement This is not the first time that RB has been ing the product from Novartis in 2016 –had specifically referenced headache relief, the ASA challenged for misleading consumers. engaged in a“deliberatecommercial strategy” noted that it did not featureproduct names that ref- The firm waspreviously fined A$6 million to differentiate the products in away that would erenced specifictypes of pain or areas of the body. (C3.9 million) by Australia’sHigh Court for likely mislead consumers. Expanding on its ruling,the regulatory body misleading consumerswith its Nurofen ‘Specific “The alleged conduct,”the ACCC said, “was said that it wasclear to consumers that the ad- Pain’ line of products, which claimed to tar- particularly concerning giventhe significant vertisement’smessage wasthat Nurofen was get the relief of specific pains –Back Pain,Mi- penalties handed down by the court against the intended for “pain relief generally” and that grainePain, Period Pain and Tension Headache – makers of Nurofen for what we consider to be “headache had been referenced as an example despite all containing 342mg of ibuprofen lysine similar conduct.” of the type of pain relief it could provide”. (OTC bulletin,20October 2017, page 18). OTC RB wasfined A$6.0 million (C3.9 million) by Australia’sHigh Court for misleading consum- ers by claimingeachofits fourNurofen Specific Pain products had been formulated to tacklea specific type of pain, despite them all contain- ing 342mg of ibuprofen lysine. OTC

Germany-based natural health products manufacturer and distributor Cefak has added aB12 vitamin supplement to its Cefavit range in its home market. By “boosting” the body’ssupply of B12, the firm said theCefavit B12 supplement could help reduce Russians arebeing challenged by OTCPharmto fatigue and weariness, contributetothe normal “takethe test” on the newly launched Rinostop formation of redbloodcells and supportthe normal websitetohelpthem find the correct product for energy metabolism of amino acid homocysteine. the treatment of their specific nasal congestion. Cefavit B12 raspberry-flavoured chewable The redesigned Rinostop websitemade it easier People in Germanysuffering from severe throat pain tablets aresuitable forvegans and contain forconsumers to access information about can nowturntoHexal’sFlurbiAngin throat lozenges. a400µg mixtureofthe naturally occurring Rinostop products, OTCPharmsaid, and “gain Thesugar-free,orange flavour tablets –which “bioactive” ingredient methylcobalamin, as well knowledge and awareness of nasal health”. contain the non-steroidal anti-inflammatory as the chemically derived cyanocobalamin. The websitedescribes the specific uses and drug (NSAID) flurbiprofen andes ar uitable for The tablets arelactose-, fructose-, gluten-, gelatin- components of eachofthe Rinostop products: adults and children aged 12 and over–worked and colour-free and come in packs of 60. Rinostop; Rinostop Extra; and Rinostop Aqua. fast and forupto four hours, the firmclaimed. Cefak also offers aCefavit B-complete The digital platformwould “educateand engage Flurbiprofen forthe treatment of oral supplement containing the “eight essential users”,OTCPharmsaid,through information sections inflammation wasswitched from prescription-only vitamins of the Bcomplexthat the body needs on the physiology of the nose,diseases of the to OTCstatus in Germanyon1January2015 on adaily basis”, along with Cefavit D3 vitamin nose and sinuses, and the role decongestants play (OTC bulletin,16January2015, page 16). OTC Dproduct. OTC in alleviating congestion and aiding breathing. OTC

16 OTC bulletin 15 December 2017 EVENTS OTC

JANUARY 26-27 February 30 January AESGP Conference with the Regulatory Intelligence European Union Medicines Agencies Frankfurt, Germany Lisbon, Portugal Regulatory intelligence and regulatory decision- ‘Public and consumer health: Future priorities for European Union (EU) Medicines Agencies’ is making will be discussed at this one-day event. the theme of this two-day event organised by the Association of the European Self-Medication Contact:Forum Institut für Management. Industry,the AESGP,with the EUHeads of Medicines Agencies (HMA). Tel: +49 6221 500 680. There will be sessions on ‘Self-care as the first choice in healthcare –which issues need to Email: [email protected]. be addressed by medicines agencies?’; ‘Regulatory optimisation’; and ‘The impact of new Website: forum-institut.com. medical devce regulation’. Speakers will include: Zaide Frias of the European Medicines Agency(EMA); Andrzej Rys of the European Commission; Klaus Cichutek of the HMA; Ian Hudson and John Wilkinson of the FEBRUARY UK’s Medicines and Healthcare products Regulatory Agency(MHRA); and Karl Broich of the federal institute for drugs and medical devices, BfArM. 27-28 February Contact: AESGP. Tel: +32 2735 51 30. Email: [email protected]. Website: aesgp.eu/lis18. CIS Pharmaceutical Forum Moscow, Russia 1-2 March 7-11 March This two-day forum is said to be “the only con- Pharmaceutical Regulatory Engredea ference covering the entire Commonwealth of Affairs in Russia and California, US Independent States (CIS) pharmaceutical sector.” the Eurasion Union Afive-day event looking at natural and or- Contact:Adam Smith Conferences. London, UK ganic health products. Tel: +44 20 8004 5707. Countries covered at this two-day meeting in- Contact:Engredea. Email: [email protected]. clude Armenia, Belarus, Russia and . Tel: +1 866 458 4935. Website: cispharmaforum.com. Contact:Management Forum. Email: [email protected]. Website: engredea.com/en18. 27-28 February Tel: +44 20 7749 4730. Email: [email protected]. Medical Devices in MENA, 11-14 March Website: management-forum.co.uk. Russia and the EAEU CHPAAnnual Frankfurt, Germany 5-6 March ExecutiveConference Day one of this seminar will focus on the Middle EuroPLX 66 Florida, US East and North Africa (MENA). Day twowill Lisbon, Portugal The annual meeting of the US Consumer look at the Eurasian Economic Union (EAEU). This two-day meeting will provide aforum Healthcare Products Association (CHPA). Contact:Forum Institut für Management. for business development decision makers Contact:CHPA. Tel: +49 6221 500 685. for discussing and negotiating collaborative Tel: +1 202 429 9260. Email: [email protected]. agreements in licensing, marketing, and dis- Email: [email protected]. Website: forum-institut.com. tribution of patented medicines, generics, bio- Website: chpa.org/aec. similars, OTCproducts, medical devices and MARCH food supplements. APRIL Contact:RauCon. Tel: +49 6221 426 2960. 1-2 March 17-19 April Email: [email protected]. Capitalising on Change Website: europlx.com. DIA 30th Annual EuroMeeting Through OTCInnovation Basel, Switzerland and Business Development 7-9 March ‘Join us at the crossroads of healthcare’ is London, UK Advanced Pharmacovigilance the theme of this three-day meeting organised This two-day conference and networking London, UK by the Drug Information Association (DIA). event is organised jointly by OTCToolbox and Topics to be covered at this three-day confer- It will include sessions on medicines of the the Pharmaceutical Licensing Group (PLG). ence include: compliance and drug safety; future, medical devices, pharmacovigilance, and Contact:OTCToolbox. licensing agreements; and risk management. drug development and regulatory approval. Tel: +44 121 314 8757. Contact:Management Forum. Contact: DIA. Email: [email protected]. Tel: +44 20 7749 4730. Tel: +41 61 225 5151. Website: plg-group.com/events/ Email: [email protected]. Email: [email protected]. 3rd-otc-event. Website: management-forum.co.uk. Website: diaglobal.org/europe2018. JUNE 9March OTCMarketing Awards 2018 London, UK 5-7 June Organised by OTC bulletin,these Awards recognise the best of 54th AESGP Annual Meeting the British OTCindustry.Join the party and celebrate all of your Amsterdam,TheNetherlands MARKETINGAWARDS achievements at the OTCindustry’smost talked about and most Recognising the best of the British OTCIndustry This three-day conference is the annual meet- glamorous night of the year.Stroll down Piccadilly and step into 2018 ing of the Association of the European Self- the Art Deco splendour of the Park Lane Hotel’sfamous galleried Medication Industry,the AESGP. Ballroom. Youcan also followthe Awards on Facebook, Instagram, LinkedIn, Twitter and YouTube. Contact: AESGP. Contact: OTC bulletin. Tel: +32 2735 51 30. Tel: +44 1564 777 550. Email: [email protected]. Website: otc-bulletin.com/awards. Email: [email protected]. Website: aesgp.eu/events/.

15 December 2017 OTC bulletin 17 OTC BUSINESS STRATEGY

After spending most of the decadetackling productionand recall issues in the US, Johnson&Johnson’s(J&J’s ) global OTCbusiness is now ready to fully reassert itself in the global marketplace as Katie Devine, global president of the firm’sOTC franchise, tells Matt Stewart.

J&J targetsDevine righttowin

he top priority for J&J’s class,”she added, “allthese trends offer an op- existing brands and within its existing core Consumer business is to portunity to makeadifference, not only in the need states. build scale in OTC,” is the livesof patients, buteconomically as healthcare This wasatop priority,she insisted, and “Tmessage from the US-based systems around the world face an inability to would see the companydrive internal innova- giant’s global head of its OTC fran- pay for the increasing cost of care.” tionand also seek externalpartnershipsorac- chise Katie Devine. “I believe,” Devine stated, “that J&J in this quisitions that could help bolster J&J’sposition Following years of fire-fighting production space has aunique right to win.” across those categories. and recall issues in the US –where the firm’s Asked whyshe wassobullish on J&J’splace Arecentexample, Devine pointedout, was OTCbusiness still operates under aconsent in the OTCmarket, Devine pointed to the com- the firm’sacquisition of Fortasec in Spain. decree (OTC bulletin,17 March 2011, page pany’sportfolio of well-established brands Theloperamide-based diarrhoea treatmentcon- 1) –Devine is insistent that the companyis across its “core need states”. tained the same active ingredient as J&J’sexist- ready to move on, fill in the white spaces the Across those keycategories –allergy,cough ingImodium brand, she explained, butwith the OTCunit has in various markets and reassert and cold, digestive health,eye care, painrelief added benefit of astrong brand equity with its “right to win” in the self-care market. and smoking cessation –Devine explained, J&J Spanish consumers. “Weare really excited to be focused on had arange of category leading brands, such This meantthat J&J couldbolsterits global growth and the opportunity for growth within as Benadryl, Sudafed, Imodium, Visine, Tyle- leadership position in digestive health –acore the OTCbusiness,”Devine said. “I’m excited nol and Nicorette. needstate–bygainingaleadingbrandinSpain, about the opportunities for our industry,for “So, already within our core need states we Devine continued, butthen apply apipeline of self-care aroundthe world and our strong right have brands with momentum,”she claimed, innovation and marketing communications to win in this space.” “brands that are growing and gaining share.” from Imodium and bring it to life under the At atime when some of J&J’srivals had Combining these brands with the “strong Fortasec equity. decided to cut and run from the OTCspace, science-based innovation and depth of con- “The result is,”she concluded,“we are growing Devine pointed out that the firm wOsa TC as sumer insights” the companyhad, Devinesaid, that brand incredibly well since the acquisition.” an “attractive space for J&J” and one that it was “will create apath for growth going forward”. “Wedon’twant to makethings global for “incredibly committed to”. Aroundthese coreneed states, Devine con- the sakeof it,”Devine said, “but we want to “It is alarge category thatisgrowing,”Devine tinued, the firm hadve de loped agrowth strategy takeall the great insights and science we have continued, “andthere are anumber of trends that built on three pillars: growthe core;nextgen- and bring them to life in the voice of the brands showatrajectory of exciting growth movement erationtreatments; andgeographic expansion. that are trusted by local consumers.” going forward.” Expanding on the three pillars, Devine ex- Acquisitions likeFortasec would play arole “The world’sageing population, increas- plainedthat growing the core required the firm in developingthe company’s core and expand- ing access to healthcare, the riseof the middle to keep afocus on howbest to innovate on its ing its geographic reach, Devine said, adding

18 OTC bulletin 15 December 2017 BUSINESS STRATEGY OTC

that there were “still areas of the world where These developments were not the traditional peoplehaveexchangedtheirhard-earnedmoney we are not serving patients today” andthatac- pill or powder, sheadded, butenabled the firm for, then that willquickly emerge and consumers quiring brands and companies could be akey to provide innovative solutionstopeoplemanag- will abandon the product.” enabler in this regard. ing their digestive health or lactose intolerance. “The transparency of theonline worldvery “There are some countries in the world where However, Devine admitted that entering less much worksinthe favour of productsthat pro- today we have asmall presence,”Devine ex- regulated sectors of the consumer healthcare vide real benefit,”she concluded. plained, “yes you can growthat organically, market did pose challenges, even for acompany This change in the healthcare landscape, buttotruly get to aleadership position in a the size of J&J. Devine said, wasindicative of the challenges country likeBrazil, for example, that is going These newareas presented a“much more healthcare companies were facing in an increas- to require merger and acquisition activity.” crowded competitive space”, shesaid. “But, we ingly digitised world. Asked about other markets where the firm believe that we have aright to win in these new “Ifaperson went into their doctor’s office waskeen to use inorganic growth to increase areas, as our science-based approach enables 10 years ago theywould have explained the scale, Devine said that as well as Brazil, the us to produce innovative products with credible, symptoms and asked for an opinion,”she noted. company sawJapan and Russiaasrepresenting strong claims.” “Now, that person might come in with astack big opportunities for the business. While the competitive playingfield waswide, of ideas from various sources even in categories While mergers and acquisitions could help with somecompanies taking alessscience-based as complexascancer treatment.” expand the firm’sreach geographically,they approach to product developmentand claims, “Yet, whilepeople are coming into the health- would also play arole in achieving the aimsof Devine waskeentopoint out that it wasim- care system with more information than ever thecore and next generation treatment strategic portant for J&J to stick to what gave it its competi- before,”Devine continued, “I again seethat as an pillars, Devine said. tive edge,which wasbothproducts thatprovided opportunity rather than achallenge, as people “Within the area of mergers and acquisitions, agreat benefit, butalso the relationships it had are more than ever ready,willing and able to it is the top priorityof J&J’sConsumerbusiness with consumers andhealthcare professionals. have aconversation about their health.” to build scale in OTC,”she continued. “Weare “People are continuing to look to their health- “Aided by wearables, people can tell you looking at smaller tuck-in deals or larger transfor- care professionals to navigate this increasingly about their levelof activity,of sleep, of heart mational deals, especially in our core need states.” complexlandscape,”Devine pointed out, “so rate,”she enthused, “and theywanttobemore While not referring directly to theup-for- whetherthat is adoctororpharmacist, theyare proactively involved in their health, so it is an salePfizer Consumer Healthcare and Merck looking to those folks for solutions.” opportunity to have more genuine and person- Consumer Health businesses,Devine admitted “Wefeel that despite the variety of claims alised dialogue with people.” thatthe firmtook a“serious look” at every- that may be out there, those healthcare profes- “However, as an industry,the biggest chal- thing that came on the market, especially as the sionals feelaresponsibility to bringtheir patients lenge we have to set for ourselves is howto number of available assets shrank through on- science-based solutions that are actually going act with speed and agility in that environment,” going consolidation in the industry. to work for them,”she continued. Devine conceded. However, acquisitions hadto be “smart, strat- “While people are demanding more person- egic and in line with our priorities”, Devine Strong value proposition alised solutions, theyare also increasingly liv- insisted,while alsobuilding shareholdervalue. “Having astrong value proposition not only inginanenvironment where the time from Turning to the company’sother strategic for consumers butalso for healthcare profession- identifying aneed and having that need met is pillar,Devine said that next generation treat- als,”Devine said, “will help us break through increasingly narrowing,”she warned. ments would contribute to the core, butcould in acrowded space.” “Weasan industryneedtobereacting with also lead to newbrands and categories that However, that wasn’ttosay that J&J would speed and agility and there are areas where could further expand the OTCbusiness. only continue to detail professionals likethey we could act more quickly,” Devine admitted. “OTC is expanding into the broader self- always had, Devine stated. “A keypart of cut- “I think thereisbroad awareness and acknow- care arena,”Devine stated, “where consumers ting through the noise–especially online –inthe ledgement of that.” are using alot of different things to manage broader OTCmarketplace, is recognising that “It is important to be ambidextrous in your their conditions, such as pain or allergies.” the idea of expert advice is not as traditional approach,” Devinesaid. “Takewhat we have “Asacompanywecannot limit ourselves as it wasbefore.” done well historically,but also learnhow to oper- to the traditional definition of OTC,”she added, “There is alot broader collection nowadays ateinamorenimble and changingenvironment.” “especially when categories likenaturalingre- of what people would call influencers,”De- “Westill need fantastic products and pack- dient solutions and devices are growing at twice vine explained. “Yes,people still trust doctors aging, but, we need adigital ecosystem to go the rate of traditional OTCproducts.” or pharmacists, buttheyalso trust the mummy with them,”she insisted.“We can’t walk away “Ouraim is to make surethat in ascience- blogger that theyfollowand the ratings and from onefor theother.” basedway,weare expanding into these spaces,” reviews on Amazon.” “Weasanindustry can help more patients by Devine revealed, “and really providing unique so- J&J, shesaid,saw this expansion of the influ- increasing access,”Devine stated, “and digital and lutions for people experiencing these conditions.” encer universe as an opportunity rather than a e-commerce is fundamentallyabout access.” “Whether these will be newbrands or ex- threat. “When you look at ratings and reviews “Byreaching more people and giving them tensions of existing brands –and whether we for example, that canrepresent multiple people solutions thatwork we will both takecostsout buythem in ordevelopthem ourselves–de- having apositive experience with your prod- of the healthcaresystemand improve outcomes.” pends on the business opportunity,”she noted. uct, which is the best advertising that you J&J’sstrategy in OTCwas designed to meet Using Lactaid –the firm’s lactose intolerance could have.” these newchallenges and takethe opportunities brand in theUS–as an example, Devine said that “Furthermore, regardless of claims or prom- theypresent, Devine said. “Don’tsee these alreadythe brandhad branched out to non-tradi- ises that could be made,”Devine insisted, “if changesasathreat,”she added, “but as an oppor- tional OTCformats such as food and ice creams. that product is not delivering the benefit that tunity to grow theOTC industry as awhole.” OTC

15 December 2017 OTC bulletin 19 OTC REVIEW OF THE YEAR

Continuing the recent trend of consolidation, transformational deals reshaped the OTCindustry in 2017. Elsewhere, online retailers began to shakeup the market, while araft of switchapplications kept regulators busy. TomGallen reviews alively 12 months.

Deals grab headlines in 2017

ergers and acquisitions to the top of the global standings (see Figure 1). move in 2017, grabbing in June infant nutrition dominated the headlines Olivier Brandicourt, Sanofi’schief execu- specialist Mead Johnson for US$17.9 billion in 2017,but not alwaysfor tive officer,saidthat combining the French (C15.1 billion). The deal secured RB’s“global Mthe right reasons. While firm’s existing Consumer Healthcare business market leadership position in consumer health”, Sanofi and Reckitt Benckiser (RB) both with the Germancompany’s OTCoperation had the firm claimed, noting that Mead Johnson’s madetheir intentions clearwithtrans- created a“strong and innovative”global con- infant and nutrition business would increase formational deals, Bayer and Perrigo sumer healthcarefirm (OTC bulletin,13Jan- revenues at its Health unit by around 90% struggled with the fallout of past ac- uary 2017, page 1). (OTC bulletin,30June 2017, page 7). quisitions gone sour. Sanofi spent 2017 integrating Boehringer Prompted by the Mead Johnson deal, RB Pfizer and Merck KGaA too played their part Consumer,with Brandicourt reporting last announced in October an organisational shake-up in ensuring mergers and acquisitions remained month that this process wasnow “more or that will see chief executive officer keRa sh Ka- in the headlines, both announcing potential less complete” (OTC bulletin,24November poor takedirect control of the firm’sglobal exits from the market and pricking the ears of 2017, page 6). Further deals to growSanofi consumer healthcare operations. rivals keen for their next big move. Consumer Healthcare had notbeen ruled out,he From 1January 2018, RB will reorganise Sanofi started thewy ne ear with abang, noted, revealing that the companywould continue its operations into twoglobal business units: closing on 1January its acquisition of Boehringer to “invest to sustain aleadership position”. RB Health and RB Hygiene Home (OTC Consumer Health Care, and catapulting itself Similarly to Sanofi, RB made abold strategic bulletin,3November 2017, page 5). With Kapoor as its president, RB Health Global growth 4% will combine the firm’sexisting Health business Sanofi & with Mead Johnson, and anumber of brands 5.1 ±0.0 Boehringer Ingelheim 3.6 from its Hygiene unit. RB Health would help Bayer 4.8 -0.1 1.0 the firm to integrate Mead Johnson successfully

GlaxoSmithKline 4.8 -0.1 2.3 and to secure “long-term value creation” at the business, Kapoor explained. Johnson &Johnson 4.0 ±0.0 3.1 While Sanofi and RB grabbed the headlines Pizer 2.9 -0.1 1.3 for the biggest deals in 2017, Stada provided plen- PGT 2.5 ±0.0 5.8 ty of intrigue with aseven month-long acqui- sition sagawhich ended in August with the firm’s Reckitt Benckiser 2.4 ±0.0 5.0 takeoverbyprivate equity firms Bain and Cin- Novartis 1.3 ±0.0 4.4 ven(OTC bulletin,8September 2017, page 1). Taisho 1.1 -0.1 -0.5 Bain and Cinven’stakeover–valuing Stada at C5.4 billion –succeed at the second attempt, after Takeda 1.1 -0.1 -1.9 shareholders rejected the firms’ initial offer (OTC Value share (%) Change (%) bulletin,30June 2017, page 1). Figure1:Top-10 OTCfirmsbyvalue shareand growth in theyear ended March 2017 (Source–IQVIA) With the deal overthe line, Cinvenpartner Bru-

20 OTC bulletin 15 December 2017 REVIEW OF THE YEAR OTC

no Schicksaid he looked forward to “strengthen- to get ahandle on the Omega Pharmabusiness for ing further Stada’sexisting operations, as well which it shelled out C3.8 billion in 2015 (OTC as growing the firm’sposition as aglobal phar- bulletin,17April 2015, page 3). maceutical business”. Perrigo’sproblems with Omega first emerged “Bain and Cinvenare committed to adding last year when the business posted fourth-quarter significantvalue to Stada,”Schick added, “includ- results that former chief executive officer seJo ph ing investment in organic growth and expansion Papa described as a“personal disappointment” through acquisitions.” (OTC bulletin,4March 2016, page 1). Having installed generic medicines industry This led to areviewofOmega’s operations veteran Claudio Albrecht as chief executive in anumber of “selected countries”, initiated officer (OTC bulletin,6October 2017, page by Perrigo’sthen newly-appointed chief executive 2), Stada’snew owners vowed last month to officer John Hendrickson. press ahead with plans to expand (OTC bul- letin,24November 2017, page4). Stada said it Taking legal action intended to pursue the “continuous expansion” Withthereviewongoing,Perrigo announcedin of its Branded Products operation. November last year it wastotakelegal action HeikoSchipper Should Stada decide to jump on the mergers againstOmega’s former owners (OTC bulletin, and acquisitions merry-go-round in 2018, it 25 November 2016,page1). Thedecisionwas The source of the problems, he noted, would be wise to takeonboard lessons from madeafter thebusinesswas hitwithaUS$1.67 dated back to the time when the business – recentdeals thathavenot goneaccording to plan. billionimpairment charge in itsthirdquarter. which posted sales of CHF2.4 billion (C2.10 When Bayer spent US$14.2 billion to snap up Perrigo began2017 by announcing it would billion) in 2016 –was stillrun as ajoint venture Merck Consumer Care in 2014, it triumphantly completely restructure its Belgian OTCoperation with L’Oréal.These issueshad thenbeencarried announced it had gained aUS-focused business to “safeguard” the business’future (OTC bulletin, overwhen Nestlé took full control of the unit in with “four category-leading blockbusters” in 13 January 2017, page 5). 2014 (OTC bulletin,21February2014,page1). Claritin, Dr Scholl’s, Mira-LAX and Coppertone Aleadership changefollowed in March,with Between 2012 and 2016, the business had (OTC bulletin,10October 2014, page 1). Svend Andersen jumping ship from LEO been “overreliant” on the earnings stream gener- However, just ayear later Bayer revealed it Pharma to run Consumer Healthcare International, ated by its prescription products, Schneider ex- wasexperiencing problems withthe acquisi- the division which houses Omega (OTC bulletin, plained. “On the back of that earnings stream, the tion, as the Merck businesshad been suffering 3March 2017, page 7). Andersen wastasked business begantoexpand very aggressively into from “chronic underinvestment” (OTC bulletin, with “building and further innovating [Perrigo’s consumer skin-care products.” 7October 2016, page 5). Merck had under- European] OTCportfolio with the clear goal Admitting that Nestlé had “reactedtoo invested in keybrands and had handed overa of enhancing profitability”. late” to the problems at Skin Health, Schneider “weak” newproduct development pipeline. One of Andersen’sfirstmoveswas to secure insisted that the companywas committed to While the firm initiated last year a“rebuilding the sale of Perrigo’sOmega Bittner Russian OTC turning the businessaround. To achieve this, programme” in the US to turn the performance business to Iceland’sAlvogen (OTC bulletin,8 Nestléhad appointed anew management around, the problems persisted into 2017. September 2017, page 5). team at Skin Health, led by Stuart Raetzman Reporting the firm’shalf-year results, Bayer’s Perrigo saidithad concluded thatOmega (OTC bulletin,26May 2017, page 27). chiefexecutiveofficer,Werner Baumann, declared Bittner would“better thriveunder newmanage- “all hands on deck” were required at Consumer ment” with the resourcesto invest in the business. Aggressiveturnaround Health to turn around its ailing US operation In the midst of Perrigo’sturnaround pro- The “aggressive”turnaround nowunderway (OTC bulletin,11August 2017, page 6). gramme for Omega,Hendrickson announced in at Skin Health involved an examination of ad- Expanding on Bayer’sUStroubles,Baumann June his intention to retire from the company ministrative functions globally,Schneider said, saidConsumer Healthcontinued to be negatively (OTC bulletin,16June 2017, page 23). “some manufacturing changes”, and a“reviewof impacted by the “eroding business” the firm had “It wasfor personal reasons, from afamily researchand development activities”. acquired from Merck. standpoint, to decide to retire at this time,” Despite the problems at Skin Health, the Nestlé These issuespersisted into the thirdquarter, commented Hendrickson, who willstayonuntil group “continues to see an interesting future” for withthe firm “workingfeverishly” to turnaround his successor is identified. the business, Schneider insisted, “particularly on Consumer Health in the US (OTC bulletin,3 Problems with acquisitions were not limited the Consumer side”. November 2017, page 4). to the established consumer healthcare players Nestlé recently committed to growingits in 2017, with arelatively newentrant to the presenceinthe global consumer healthcare mar- Leadership change market, Nestlé, facing similar challenges. ketfollowing a“comprehensive reviewofits Bayer will hope that achange of leadership at The Swiss firm vere aled in September that business”(OTC bulletin, 221 July 017, page 7). the top of Consumer Health will give the business it wasworking to “aggressively right-size” its With Nestlé prepared to “pursue growth op- the impetus it needs to affect aturnaround in Nestlé Skin Health operation, as the business portunities in consumer healthcare”, the firm was 2018. After six years at the helm of Consumer wassuffering from ahost of “self-inflicted is- mooted to be among the runners and riders to snap Health, Erica Mann will be replaced by Nestlé sues” (OTC bulletin,6October 2017, p) age 5 . up Merck KGaA’s Consumer Health business Nutrition chief HeikoSchipper on 31 March Chief executiveofficer Mark Schneider–who (OTC bulletin,22September 2017, page 20). (OTC bulletin,24November 2017, page 1). took the helm at Nestlé on 1January –revealed However, such amove nowlooks unlikely In continuing to suffer the negative effectsfrom that Skin Health had been underperforming following Nestlé’sacquisition of Atrium In- apast acquisition in 2017, Bayer wasnot alone, for anumber of years, with the issues at the novations (see page 3). with Perrigo spending the 12 months attempting business “finally coming to ahead last year”. Merck in September announced it was“pre-

15 December 2017 OTC bulletin 21 OTC REVIEW OF THE YEAR

paring strategic options” for its global Con- commerce,”GSK reported in the third quarter. well-established European pharmacyconcept”, sumer Health operation, “includingfull or partial Bricks-and-mortar retailersturning to price McKessonEuropesaid, noting thatthe company sale of the business, as well as strategic part- promotions to “compete with e-commerce operated 186 LloydsPharmacia pharmacies nerships”. The move wasnecessary,the firm and get more foot traffic into the store” was in Italy,along with 28 franchise pharmacies. said, to “support Consumer Health’ssuccess- “depressing” value growth, GSK insisted. “McKesson Europe will support independent ful future development” (OTC bulletin,8Sept- Thanks to the rise of online players like pharmacies in Italy through these challenging ember 2017, page 1). Amazon, e-commerce sales accounted for 61% times, whatevertheir decision,”the firm said, “and While Merck’smove wassomewhat un- of growth in the US OTCmarket in the year help them to takeadvantage of the newlandscape.” expected –given its investment in growing ended April 2017,reported markerresearcherL2 Away from retailers and manufacturers, Consumer Health in recent years –Pfizer’s (OTC bulletin,24November 2017, page 20) regulators also had abusy year with switches decision to weigh up asaleofits Consumer L2’sresearch indicated that smaller firms, or at the top of their agenda. Healthcare operation came as less of asurprise. “digital-native disruptors”, had capitalisedoncon- Numerous prescription-to-OTC reclassifica- Pfizer announced in October it wasreview- sumers’search behaviour online to “gain outsize tions gained approvalaround the world in 2017, ing“strategic alternatives” for Consumer search visibility” on Amazon in the US, leaving however, the year wasalso characterised by a Healthcare, including the potential sale of the the multinationals playingcatch-up. number of high profile vere rse-switches and unit,aspart of the firm’s “continuing effortsto While firms veha been somewhat slowon failed switch attempts. allocate resources and capital to best servepa- the uptakewith Amazon, numerous OTCplayers In Europe, Germanyand the UK led the tients and maximise value for shareholders” have secured deals with Alibaba in recentyears way. Sanofi’sThoma-Profen Plus (ibuprofen (OTC bulletin,20October 2017, page 1). to build afoothold in China’sonline market. and caffeine)and GSK’sZovirax Duo (aciclovir Arange of options would be considered for And in 2017 this activity continued apace, and hydrocortisone) wereamong the products Consumer Healthcare, the US-based pharma- with Sanofi, Bayer,RBand GSK working to achieve OTCstatus in Germany during the 12 ceuticals giant explained, including a“full or in partnership with the Chinese giant (OTC months(OTC bulletin,21July2017, page 11; partial separation” of the business from Pfizer bulletin,22 September 2017, page 6; OTC OTC bulletin,24November 2017, page 16). “through aspin-off, sale or other transaction”. bulletin,24November 2017, page 3). Glenmark’santimalarial MaloffProtect “Pfizer may ultimately determine to retain In Europe, Zur Rose –which operates Dutch (atovaquone and proguanil hydrochloride), Leo the business,”the firm pointed out. online retail brand Doc Morris –was at the heart Pharma’sDovonexpsoriasis treatment (calci- The move follows atwo-year period of specu- of retail disruption during the 12 months. The potriol) and FMC Pharma’sArthriex(glucosa- lation about the future of Pfizer Con- mine) were just some of the products sumer Healthcare. This wastriggered switched in theUK(OTC bulletin, by the firm’sfailure to switch its block- “ Growth of theonline retail channel 21 July 2017, page 11; OTC bulletin, buster statin Lipitor from prescription to has startedtocreatetougher competition 8September 2017, page 18; OTC OTCstatus in the US (OTC bulletin, forOTC mega brands bulletin,3November 2017, page 19). 14 August 2015, page 1). ” Arguably the biggest switch in the Some of the world’sbiggest OTCplayers, firm announcedinJune an initialpublic offering UK came at the end of the year,with the re- including GlaxoSmithKline (GSK), Johnson (IPO) to fund its ambitious expansion plans classification of Pfizer’sViagra (sildenafil) as a &Johnson (J&J) and RB, have expressed an (OTC bulletin,16June 2017, page 1). Cash pharmacymedicine(see front page). interest in buying Pfizer Consumer Health- from the IPO would help it to “takeadvantage Elsewhere, NewZealand approvednon- care (OTC bulletin,3November 2017, page of market opportunities” and “further expand prescription supplybyapharmacist of selected 1), with all three firms monitoring the situa- its strong position in the European pharmaceutical contraceptives(desogestrel, ethinylestradiol, lev- tion closely. e-commerce sector”. onorgestrel, andnorethisterone), Japan switched Combined, Pfizer’s and Merck’s announce- Away from the digital disruptors, the traditional Bayer’sClaritin (loratadine), and the US gave ments guarantee that the OTCmarket will be bricks-and-mortar retailers also had an eventful the nod to Sanofi’sXyzalAllergy24HR(levo- reshaped by mergers and acquisitionsin 2018. year.Walgreens Boots Alliance (WBA) in cetirizine dihydrochloride) (OTC bulletin,3 However, consolidation will not be the only October gained regulatory approvaltoacquire March2017, page11; OTC bulletin,3February disruptive force consumer healthcare firms veha for US$4.38 billion less than half of drugstore 2017, page 16; OTC bulletin,17February to worry about, with the rise of e-commerce rivalRite Aid’s4,624 stores, after amending 2017, page 11). poised to shakeupthe retail landscape. the deal for athird time to satisfy competition Australia’sswitchenvironment wascharacter- Retail disruption continued apace in 2017, concerns (OTC bulletin,6October 2017, page 7). ised by failed reclassifications in 2017. Medi- driven notably by e-commerce giants Amazon WBA’srival McKesson also made headlines cines regulator the Therapeutic GoodsAdmin- and Alibaba in the US and China respectively,and in 2017, spying agrowth opportunity in Italy. istration (TGA) rejected in September appli- online pharmacy operatorZur Rose in Europe. In August, Italy opened the door for national cations to switch erectile-dysfunction drugs The growth of the online retail channel has pharmacychains after repealing legislation that sildenafil and vardenafil to pharmacist-onlystatus started to create tougher competition for the OTC banned corporate entities from owning phar- (OTC bulletin,22September 2017, page 10). mega brands that dominate in the offline world. macies. It also removedthe cap on howmany Explaining its decision,the TGA cited con- This upsurge in competition beganto impact pharmacies asingle group may operate (OTC cerns around the misuse of the drugs, pack size the salesofmultinational consumer healthcare bulletin,11August 2017, page 1). Responding and thepotential forunderlying health conditions firmsduring the year,with most major players to the news, McKesson Europe told OTC to go unnoticed. highlighting e-commerce as afactor behind bulletin that the companywould watch “very It wasthe second time this year that the TGA depressed growth. closely thedevelopment of the newregulations”. had rejected aswitchfor vardenafil. In ,tMay he “Weare seeingpricing pressureindeveloped The German firm wasthe “only retail and regulator turned down an application by Bayer markets specifically linked to growing e- franchise provider with acomprehensive and (OTC bulletin,17February 2017, page 14).

22 OTC bulletin 15 December 2017 REVIEW OF THE YEAR OTC

In addition to rejecting prescription-to-OTC reclassification of medicinesasnon-prescription switches, the TGA also sanctioned the first while minimising the administrative burden. notable reverse-switch of 2017, reclassifying at “If we want to improve access to OTC the start of the year codeine to prescription-only medicines, we need to have aclear picture of status (OTC bulletin,13January 2017, page 9). the current state of the switching environment,” TheTGA saidthat the Federal Government’s Frias said. “Currently,wehavetwo parallel scheduling delegate –who made the final switching worlds.” decision –believedthat there was“compelling “One world is the centralised procedure which evidence of the harm caused by overuse and generally deals with highly innovative products,” abuse ofOTC codeine-containing medicines”. she explained, “and the otheristhe national level, which handles what Iwould call ‘bulk switches’.” Opiates reverse-switched Yetwhile there were twoavailable options Codeinewas among anumberofopiates when it cametoswitchinginthe EU,Friaspoint- reverse-switchedinFrance thisyear, in asur- ed out that there were still “only fiveingredients prise move by thecountry’s medicinesagency available OTCacross all member states”. ANSM(OTC bulletin,21July2017,page 1). Frias noted that the EMA had begun apro- Opioid derivativeswere placed on France’s gramme to develop a“multi-stakeholder scientific list of prescription-only medicines following advice procedure for OTCswitches”. Hubertus Cranz an announcement by the country’snew health “Wewill mobilise expertise from other said, the revised rules were creating newobstacles. minister Agnès Buzyn. agencyworking parties and committees,”Frias Underthe newlegislation, he noted, medicalde- Citing concerns overthe abuse of opioid said, acknowledging the need to set up an OTC viceswere subject to much stricterdataand doc- medicines, Buzyn announced on 12 July that Expert Forum. Led by the EMA, this Forum umentationrequirements. Existingdevices were “medicines containing codeine, dextrometho- would harnessthe expertise gained by national also subject to review, he added,withmanyOTC rphan, ethylmorphine and noscapine” would be authorities, which were used to carrying out manufacturersfacing the prospect ofreclassifica- reverse-switchedtobecome prescription-only these “bulk switches”, into thescientific environ- tionoftheir productsinto higherrisk categories. in France. Previously,these medicineshad been ment, she said. Across the Atlantic, US industry spent 2017 available without prescription in certain strengths. Responding to Frias, Hubertus Cranz, direc- workingtoremove theirown regulatory roadblocks. In contrast to France’spatient safety motivated tor general of the Association of theEuropean Reform of the OTCmonograph system was move,religious conservatism wasthe driving Self-Medication Industry,the AESGP,saidthe top of the Consumer Healthcare Products Asso- force behind Poland’sheadline grabbing reverse- association’sinitial reaction to the developments ciation’s(CHPA’s) agenda during the year,follow- switch in 2017. had “certainly been positive”. ing apush by the Food and Drug Administration In June, Poland’sultra-conservative govern- “But,”hewarned, “the devil is in the detail. (FDA) to modernise the medicines approvalpro- ment reverse-switched emergencycontracep- There are plentyofquestions fromstakeholders cess (OTC bulletin,30 May2014, page 12). tive EllaOne (OTC bulletin,30June 2017, aroundwhat the right candidatesfor reclassifica- Scott Melville, CHPA’spresident and chief page 15). EllaOne (ulipristal acetate) wasthe tion are. What is really necessary is early,mean- executive officer,told the association’s annualex- only emergencycontraceptive available in ingfulscientific advice.” ecutive conference in Marchthat consumers and Poland without aprescription, following the industry were set to benefit from awaveofinnova- product’ssuccessful switch from prescription AESGP welcomes regulation tioninthe US, drivenbyreform to the monograph to OTCstatus via the European Union’s(EU) Away from its work on switches, the AESGP system (OTC bulletin,7April 2017,page 10). centralised procedure in 2014 (OTC bulletin, welcomed the approvalthis year of the long- CHPAhad worked together with the FDA 28 November 2014, page 11). awaited EU medical devices regulation by and US Congresstodevelop a“better regulatory The ban on OTCemergencycontraceptives the European Parliament (OTC bulletin,28 framework that could preserveand improve” wasprompted by the Polish Health Minister, April 2017, page 10). the monograph system for “generations to come”, Konstanty Radziwiłł, who made several hostile The association said thatindustry appreciated he promised. statements regarding emergencycontraception. the recognition of substance-basedmedical devic- In September, Melvilleannounced thatindus- With the attitude to switch by national regu- es –which have aphysical,rather than pharma- try waswilling to pay“modest” userfeesto en- lators continuing to differ widelyacrossEurope, cological, mode of action –inthe newregulation. ablethe FDAtoimplement monographreforms. EU-wide regulator the European Medicines “Nowlaunchingintotheimplementationphase, Modernising the monograph system was Agency(EMA) revealed this year plans to it is essential for the EU institutionsand the mem- crucial,Melville said, to ensureitwas “efficient, improve the switching process through its EU ber states,”theAESGP insisted, “to ensure that the transparent, and accommodating to innovation” Medicines AgencyNetwork Strategy 2020. regulation is correctly implementedin atranspa- (OTC bulletin,22September 2017, page 1). Improvingthe availability of well-established rent and proportionate manner.” Looking ahead to 2018, further consolidation medicines wasone of the strategy’smain pri- Theapproval of the legislation didnot win among the leading manufacturers appears in- orities, as waspatient-focused innovation to universal backing however. At an AESGP meet- evitable with both Pfizer’sand Merck’sOTC empower patients and healthcare profession- ing in October,MaikelHendriks, chief ex- businesses poised to go under the hammer. als, explained Zaide Frias, head of the EMA’s ecutive officer of Netherlands-based medical Retail disruption looks set to continue, as Human Medicines Evaluation division (OTC devices specialist MedicalBrands, said the new the influence of Amazon grows and Zur Rose bulletin,3March 2017, page 18). ruleswere a“roadblock for creating newprod- works to expand its reach across Europe. Optimising the operation of the EMA and ucts”,ratherthan an “opportunityfor innovation” In addition,OTC associations worldwide will Heads of Medicines Agency(HMA) network was (OTC bulletin,20October 2017, page 10). continue to push for wider adoption of self-care. another priority,Frias said, including the safe Farfrom“removing technical barriers”, he It promises to be afascinating12months.OTC

15 December 2017 OTC bulletin 23 OTC PEOPLE

Manufacturers Manufacturers Vernimb leads Bayerannounces Mobergunit oberg Pharma has appointed Jeff Vern- new UKOTC head Mimb as vicepresident of its globalCon- sumerHealth division. ayer Consumer Health has named Oya Currently general managerofMoberg’s North BCanbas as its UK and Ireland director, suc- America business, Vernimb will be in charge ceeding Najoh-Tita Read. of sales and marketing at the newly-created Previously head of Bayer’sConsumer Health Consumer Health unit, which brings together operations in Turkey,Canbas hasalso heldsenior the firm’sNorthAmerica, Europe andAsia Pacific posts at Gillette and Procterand Gamble (P&G). consumer healthcare operations. Commenting on her ambitions for the UK Mobergsaidthe move reflectedan“increased business,Canbassaidshe wanted the company focus on theNorth American market”–which to “growfaster than the market” and increase it said generated 90% of the firm’stotal turn- its market share. OyaCanbas over –while enabling the companyto“better co- Crucialtoachieving this wouldbedeveloping plained, to ensure its operations were future-proof. ordinate” themanagement of its global OTC “insight-led content”, Canbas said, an approach “Weneed to demonstrate howmuch we under- direct sales and distribution operations. which had already led to strong performances stand the shoppers who are buying our products Vernimb brings almost 30 years of sales and by the Berroca, Canesten and Rennie brands. andwhat their path to purchase looks like,”she marketing experience in the US consumer health- Pointing outthatitwas keyfor the business noted. “Making that distinction between con- care industry to the role, including time at Insight to understand the people who bought and used its sumer and shopper and adapting to the chang- Pharma, Novartis and overadecade at Pfizer. products, Canbas said that the wayUKconsum- ingway in which peopleshop is centraltoen- Mobergsaid it expected the reorganisation ers were shoppingfor consumerhealthcareprod- suring our operations are fit for the future.” to be completed by spring 2018, at which point ucts was“evolving”. Pointing to an “evolving digital environment”, Martin Ingman wouldstep down as global sales As aresult, Bayer’smarketing and product CanbassaidBayerConsumer Health UK needed andmarketing managerafter spending nine years development activities would need to adapt to the to be “agile and proactive”, especially when it at the company. OTC changing ways in which people shop, Canbas ex- came to the growing e-commercechannel. OTC

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24 OTC bulletin 15 December 2017